Under the terms of the deal, which was announced before the markets opened Tuesday, Levi’s has signed a definitive agreement to sell Dockers to Authentic for $311 million. The deal has the potential to ultimately reach up to $391 million through an $80 million earn-out opportunity based on the performance of the Dockers business under Authentic’s ownership in the years ahead.

“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,” said Michelle Gass, president and chief executive officer of Levi’s. “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. We thank the global Dockers team for their strong commitment and execution to building the brand, which continues to be the authority on khaki.”

Levi’s said it intends to return approximately $100 million of the net cash proceeds from the transaction to shareholders through share repurchases.

“Dockers is a natural fit for the Authentic model,” said Jamie Salter, founder, chairman and CEO of Authentic. “It’s a brand with deep roots, high awareness and a solid foundation in licensing — all things we look for when acquiring new brands. 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.”