ABG-Storm LLC signed a definitive agreement to acquire The H . D . Lee Company, Inc. from Kontoor Brands, Inc. (NYSE:KTB) for $1.0 billion on May 20, 2026. The total cash consideration of up to $1 billion, including an initial transaction value of $750 million and a $250 million earnout opportunity, subject to customary closing adjustments. At the end of 1st quarter of 2026, The H . D . Lee Company, Inc. is reported as held-for-sale in the Company's balance sheets for all periods presented. Additionally, the Company reported The H . D . Lee Company, Inc. as discontinued operations in its statements of operations and statements of cash flows for all periods presented.

For the quarter ended March 31, 2026, The H . D . Lee Company, Inc. reported total revenue of $194.3 million and total assets of $424.5 million.

The transaction was unanimously approved by the Board of Directors of Kontoor. The transaction is expected to close in the second half of 2026, subject to the receipt of required regulatory approvals and customary closing conditions. The initial transaction value of $750 million represents a multiple of approximately 1.0x the target's estimated 2026 revenue and approximately 10.0x its estimated 2026 adjusted EBITDA. Primary use of proceeds expected to be for accelerated share repurchases under new $750 million authorization as well as continued voluntary term loan payments.

Morgan Stanley & Co. LLC acted as financial advisor for Kontoor Brands, Inc. The team of Foley & Lardner LLP led by Bryan Schultz, Tim Voigtman, Leigh Riley, Dan Kaplan, Katelynn Williams, Chris King and Greg Neppl acted as legal advisor for Kontoor Brands, Inc. Ravi Agarwal, Annie Cataldo, Halley Petersen, Michael Weisser, Sara Zablotney, Rachel Malhiet, Adam Petravicius and Matt Darch of Kirkland & Ellis LLP acted as legal advisor for ABG-Storm LLC.