Levi Strauss & Co has agreed to sell its Dockers business to Authentic Brands Group for an initial value of $311 million.

The transaction price is subject to customary adjustments and closing conditions, with the potential to reach up to $391 million through an $80 million earn-out opportunity in future years based on the performance of Dockers under Authentic’s ownership.

Authentic has signed a licensing agreement with its long-standing partner Centric Brands, which will serve as the operating partner for Dockers across key categories in the US and Canada.

The company is also in discussions with regional operators in Latin America, EMEA and Southeast Asia to transition and scale Dockers’ existing businesses across those markets.

“Dockers is a natural fit for the Authentic model,” said Jamie Salter, founder, chairman and CEO of Authentic. “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.”

Levi Strauss said the sale aligns with its strategic priorities, which focus on evolving the flagship Levi brand and scaling the Beyond Yoga label.

“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,” commented Michelle Gass, president and CEO of Levi Strauss & Co.

The company intends to return approximately $100 million of the net cash proceeds to shareholders through share repurchases.

The transaction is subject to customary closing conditions and is expected to be completed in this year’s third quarter.

Levi Strauss introduced Dockers in 1986. The brand specializes in belts, pants, leather wallets, shoes and other apparel.