Kontoor Brands (KTB) Transaction presentation summary

Strategic rationale for divestiture

• Refocuses portfolio on high-performing, strategically aligned brands and categories.

• Shifts toward higher growth channels, geographies, and consumer segments.

• Increases capital allocation flexibility and investment capacity.

Transaction summary

• Sale of Lee® business for up to $1 billion: $750 million upfront and $250 million earnout.

• Valuation at ~1x 2026E revenue and ~10x 2026E adjusted EBITDA.

• Proceeds primarily allocated to $750 million share repurchase authorization and voluntary term loan payments.

• Expected closing in 2H26, subject to regulatory approvals.

• Transaction expected to be immaterial to EPS over 12–18 months due to capital deployment and cost mitigation.

Portfolio transformation and growth

• Portfolio optimization aims to accelerate revenue, earnings growth, and cash flow.

• Focus on Wrangler and Helly Hansen brands post-divestiture.

• Growth acceleration strategy supported by Project Jeanius.