Authentic Brands Group has signed a long-term strategic partnership with One Jeanswear Group (OJG) to operate the Lee brand across the United States and Canada, the companies said, marking a key step in the brand management firm’s expansion strategy following its planned acquisition of the denim label.
Under the agreement, OJG will take on responsibility for Lee’s day-to-day operations in North America, including product development, sourcing, manufacturing, distribution and wholesale management. Authentic will retain ownership of the brand and oversee its broader licensing and marketing strategy, in line with its asset-light business model.
The partnership is expected to come into effect after Authentic completes its acquisition of Lee from Kontoor Brands, a deal announced earlier this year that could be worth up to $1 billion. The transaction is anticipated to close in the second half of 2026, subject to regulatory approvals and customary conditions.
Authentic, known for acquiring and scaling heritage brands through licensing arrangements, said the collaboration with OJG would enable Lee to accelerate growth in its core North American market while leveraging the operational expertise of a dedicated denim specialist.
“This partnership brings together Lee’s rich legacy with One Jeanswear Group’s deep experience in denim,” the company said in a statement, adding that the arrangement is designed to enhance product innovation and strengthen retail relationships across the region.
Also Read: Reju opens 1st U.S. R&D hub to scale textile recycling
OJG, which manages a portfolio of denim and apparel brands, will oversee the full lifecycle of Lee products in the U.S. and Canada, from design to delivery. The company said it aims to build on Lee’s heritage while adapting the brand to evolving consumer preferences in a highly competitive apparel market.
Lee’s existing headquarters in Greensboro, North Carolina, will remain in place, along with operations in Mocksville. The companies indicated that maintaining continuity in staff and infrastructure would be a priority as the transition unfolds.
Industry analysts say the move reflects a broader shift in the global apparel sector, where brand owners increasingly separate intellectual property ownership from operational execution. By partnering with specialized operators, companies like Authentic can scale brands more efficiently while reducing exposure to manufacturing and supply chain risks.
Authentic has pursued a similar strategy with other labels in its portfolio, including Reebok, which it acquired in 2021 and subsequently licensed to regional operators. The Lee deal follows the same blueprint, underscoring the company’s confidence in licensing partnerships as a driver of long-term value.
For OJG, the agreement represents a significant expansion of its footprint in the denim segment, particularly in North America, where Lee remains a well-recognized name with a long history dating back more than a century.
The North American denim market, while mature, continues to evolve as consumers demand more sustainable materials, improved fits and greater brand authenticity.
Companies are also navigating shifting retail dynamics, including the growth of e-commerce and the need for closer collaboration with wholesale partners.
Both companies emphasized their commitment to strengthening Lee’s market position through product innovation and operational excellence. They also highlighted opportunities to expand the brand’s reach across different consumer segments, including younger demographics.
The partnership comes at a time when global apparel companies are reassessing their strategies amid economic uncertainty and changing consumer behavior. By combining brand equity with specialized operational capabilities, Authentic and OJG are positioning Lee to compete more effectively in a crowded marketplace.
While financial details of the partnership were not disclosed, executives signaled confidence that the collaboration would unlock new growth opportunities for Lee in its home market.
As the deal moves toward completion, industry observers will be watching closely to see how the partnership reshapes Lee’s presence in North America and whether it can replicate the success Authentic has achieved with other brands under its management.
The agreement underscores a growing trend in the fashion industry: the rise of strategic partnerships that blend brand stewardship with operational expertise, offering a blueprint for how legacy labels can adapt and thrive in a rapidly changing retail landscape.