Levi Strauss To Sell Dockers to Authentic Brands Group in Deal Worth up to $391 Million

Levi Strauss may be a name most commonly associated with its iconic Levi’s denim jeans lineup, but the company is also responsible for producing an array of shirts, outerwear, socks, and other apparel items — including its Dockers label of business casual offerings.

Now, according to a May 20 press release, Levi Strauss & Co. is slated to sell Dockers to Authentic Brand Group in a transaction initially valued at $311 million, subject to adjustments and closing conditions. That figure has the potential to tick upward to a total of $391 million, via an $80 million earnout opportunity hinging around the future performance of the Dockers brand beneath Authentic.

“The Dockers transaction further aligns our portfolio with our strategic priorities, focusing on our direct-to-consumer (DTC) first approach, growing our international presence and investing in opportunities across women’s and denim lifestyle,” said Michelle Gass, president and CEO of Levi Strauss & Co.

“After a robust process, we are confident that we maximized the value of the business and that Authentic is the right organization to usher in the next chapter of growth for the Dockers brand,” she added.

Levi Strauss Zeroing in on Core Business, Dockers May Find New Life With Authentic

As CNBC noted, Levi Strauss was having difficulty focusing on both its core brand and the Dockers label, with both product lines requiring deeper diversification. Furthermore, as the outlet underlined, khakis have trended downward in terms of contemporary fashion trends and overall popularity stateside, particularly as denim garments enjoy a recent resurgence in the public eye.

Gass, tasked with redirecting company efforts toward shoring up sales related to the enterprise’s core identity, has been trimming extraneous operations in order to spur new growth. CNBC pointed out that, in the three months concluding March 2, Levi’s reported $67 million in revenue attached to Dockers — however, year-prior data is unavailable.

And while Dockers may not be the hottest label in the U.S., it remains popular internationally. Authentic believes it can leverage the legacy of the label in order to revitalize its cache.

In a separate press release issued by Authentic, Jamie Salter — founder, chairman, and CEO — spoke to the opportunities the company sees within the Dockers brand.

“Dockers is a natural fit for the Authentic model. It’s a brand with deep roots, high awareness and a solid foundation in licensing – all things we look for when acquiring new brands,” Salter said.

“Dockers played a key role in shaping casual workwear as we know it today and we see significant potential to build on that legacy and grow the brand across a variety of categories,” he added.