Denim brand Lee is set to be snapped up by the fast-expanding Authentic Brands Group (ABG), following soon after its acquisition of fashion label Guess.

The development, initially reported by WWD, comes after Kontoor revealed its decision to divest Lee. The owner of Helly Hansen and Wrangler said it wants to put a “sharper focus” on the well-performing brands in its portfolio.

The divestment would see Kontoor lose control of the $750 million in revenue recorded by Lee in fiscal 2025, but give Authentic another brand to pursue its aggressive offshore growth momentum.

ABG CEO Jamie Salter has been vocal in the past about turning his licensing and operator business into a global powerhouse. At the Reuters Momentum AI summit in New York in April, he tipped ABG to pass $50 billion in sales by the end of the year.

It was forecast to reach $38 billion in sales this year, before any mergers and acquisitions. Some 50 per cent of non-US retail sales are through retail channels operated by licensing partners – around 6000 standalone stores and almost 24,000 shops in shops – dedicated brand spaces in department stores.

But in late January, the $1.4 billion takeover of Guess and the retailer’s subsequent delisting from the stock market signalled ABG’s accelerating pace.

Last June, at the NRF Asia event in Singapore, Salter explained that Authentic’s strategy is to think local and act global. So when it looks at brands to buy, it eyes opportunities for international expansion.

Dockers, for example, which Authentic bought from Levi Strauss a year ago for $311 million, derives 53 per cent of its sales outside the US, despite being an American brand.

“That was really important for us, because it had such a good platform around the globe, specifically in Latin America, where it is incredibly strong, and in certain parts of Europe,” he told delegates. “The opportunity is, Can we expand this brand globally? And the answer is yes, because it has a global footprint.”