02:29 PM EDT, 05/20/2025 (MT Newswires) -- Levi Strauss (LEVI) struck a deal to sell the Dockers apparel line to Authentic Brands Group as the denim jeans maker looks to focus on its main label and the Beyond Yoga workout clothing business.

The transaction has an initial value of $311 million, the companies said Tuesday. The price could go up to $391 million after including a potential $80 million earnout opportunity in future years.

The deal is expected to complete by the end of July for Dockers' intellectual property and operations in the US and Canada, and by the end of January for the remaining business.

"The Dockers transaction further aligns our portfolio with our strategic priorities, focusing on our direct-to-consumer first approach, growing our international presence and investing in opportunities across women's and denim lifestyle," Levi Strauss Chief Executive Michelle Gass said in a statement.

Levi Strauss said it continues to evolve the Levi's brand from jeans to denim lifestyle, while also scaling the Beyond Yoga brand. Last month, Levi Strauss said it had reclassified the Dockers business, known for its chinos and khakis, as a discontinued operation.

The company plans to use $100 million of the proceeds from Dockers' divestiture to buy back some shares. Levi Strauss' stock was up 1.2% intraday.

"Dockers is a natural fit for the Authentic model," said Jamie Salter, CEO of Authentic, which owns several brands including Reebok. "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."

Last month, Levi Strauss guided fiscal 2025 adjusted per-share earnings between $1.20 to $1.25 and net revenue to decline 1% to 2%. The consensus on FactSet is for full-year non-GAAP EPS of $1.20 on sales of $5.99 billion.

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