VF Corp., a worldwide apparel and footwear company, announced that it has entered into a definitive agreement to sell the Nautica brand business to Authentic Brands Group LLC for an undisclosed amount.

“As part of VF’s global business strategy, we’ve stated that our highest priority is to actively manage our brand portfolio to ensure that its composition positions us to accelerate growth. This announcement marks yet another example of how we’re delivering on our commitment.” said VF’s Chief Executive Officer Steve Rendle of the transaction. “We are pleased to have reached this agreement with Authentic Brands Group.”

VF has acquired the Altra footwear brand as well as the Icebreaker and Dickie’s clothing brands in the past year as part of an evaluation of its brands.

Expected to close in the first half of 2018, the transaction is subject to customary closing conditions and regulatory approvals.

The Nautica brand was founded in 1983 and acquired by Greensboro-based VF in 2003 for $585.6 million to try to tap a higher-end market.

Nautica’s leadership team was overhauled in 2017, but sales slumped. The brand lost $95.2 million last year, and VF will report $130.2 million in writedowns to account for Nautica’s lost value.

However, the brand has $1.2 billion in annual sales and 270 store locations.

“We are thrilled to welcome Nautica to the ABG portfolio and are ready to take the helm of this classic American brand,” said Jamie Salter, Chairman and Chief Executive Officer of ABG.

BofA Merrill Lynch served as exclusive financial advisor to VF on the transaction. Davis Polk & Wardwell LLP acted as legal advisor.

VF’s stock price rose 83 cents, or 1.15 percent, to $73.22 on Friday.