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Authentic Brands Group Acquires Dockers: A $311 Million Deal that Speaks Volumes
Authentic Brands Group (ABG) and Levi Strauss & Co. have reached a landmark agreement: ABG will acquire Dockers for more than $300 million. This deal not only marks a significant financial transaction but also signifies a strategic repositioning for both entities in the evolving retail landscape.
A New Chapter for Dockers
Founded in the 1980s, Dockers has long been synonymous with chinos and khaki pants. Authentic announced on Tuesday their intent to purchase both the intellectual property and the U.S. and Canadian operations of this iconic brand. Levi Strauss noted that the initial sale price stands at $311 million, though this figure may adjust based on customary conditions.
As Levi Strauss embarks on this transition, they indicated that future revenues could increase through an additional $80 million earnout opportunity based on Dockers’ performance under Authentic’s stewardship.
A Vision for the Future
Matt Maddox, President of Authentic Brands, emphasized the importance of revitalizing Dockers for a new generation. He stated, “Its legacy in casual wear gives it a strong foundation, but the real opportunity lies in reimagining the brand.” With hopes to leverage its extensive global platform and deep licensing network—boasting over 1,700 partners—the brand is set to embark on a new growth trajectory.
Strategic Focus for Levi Strauss
For Levi Strauss, CEO Michelle Gass articulated that selling Dockers aligns the company’s portfolio with strategic priorities. She explained that the move allows them to prioritize direct-to-consumer approaches while growing their international presence and investing in both women’s and denim lifestyle markets.
Interestingly, this sale comes shortly after Levi Strauss revealed its intent to explore “strategic alternatives” for Dockers, marking a pivotal shift in its business focus.
Authentic Brands Group (ABG) logo is seen on a smartphone and a PC screen in the background. (Pavlo Gonchar/SOPA Images/LightRocket via Getty Images / Getty Images)
Collaboration with Centric Brands
As part of this strategic acquisition, Authentic has partnered with Centric Brands to serve as the operating partner for Dockers across crucial categories, such as workwear, dress shirts, and activewear in the U.S. and Canada. This collaboration is poised to enhance Dockers’ market positioning while maintaining the brand’s legacy.
Ultimately, Dockers will become part of a diverse portfolio at Authentic Brands, joining other notable names like Reebok, Juicy Couture, and Sperry. This acquisition signals a transformative moment not just for Dockers, but also for Authentic as they aim to carve out a fresh identity in a competitive marketplace.
