Marquee Brands has announced the acquisition of Roots, the Canadian outdoor and lifestyle brand, for C$4.10 per share. The transaction, which takes Roots private, makes the company the 24th brand in Marquee Brands' portfolio, according to The Industry.fashion. The day before the announcement, Roots shares had closed at 3.69 Canadian dollars on the Toronto Stock Exchange, according to WWD.
Founded in 1973 by Michael Budman and Don Green, who had met at a summer camp in Algonquin Park, Roots sold a majority stake to Searchlight Capital Partners in 2015 before going public in Toronto in 2017. The brand, known for its beaver logo and its varsity jacket launched in 1979, has repeatedly outfitted Canadian Olympic teams.
Management entrusted to JM&A
Operational management of Roots will go to JM&A Design and Development, a company led by Joseph Mimran, co-founder of Club Monaco and former executive of Joe Fresh and Kit & Ace, and by Frank Rocchetti, described as a recognised leader in Canadian retail. « Few brands are as deeply connected to Canada's identity as Roots », Mimran said, stating that he wants to strengthen the product, merchandising and customer experience. He added that he looks forward, alongside Rocchetti, to leading the business from Canada in partnership with Marquee Brands.
Roots will continue to be operated from Canada, with its retail and e-commerce business covering Canada and the United States, where the brand has two stores and an online presence. The global portfolio exceeds 100 stores across North America, in addition to a business in Taiwan operated by BLA, a division of Li & Fung.
On Marquee Brands' side, CEO Heath Golden called it « an incredible honour » and described a strategic partnership with JM&A intended to root the brand in Canadian culture, while opening up a « significant global opportunity » to expand Roots into new categories and markets. Roots' president and CEO, Meghan Roach, called the transaction a « strong endorsement » of the brand, highlighting the work carried out in recent years to restore its Canadian identity.
The deal is part of a series of acquisitions for Marquee Brands, which had taken over the Italian house Roberto Cavalli earlier this summer and the California-based sock brand Stance last November. Created by Neuberger Berman in 2014, the company works with around 300 licensees and owns, among others, Martha Stewart, Laura Ashley, America's Test Kitchen and Isotoner.
Searchlight, Kernwood Limited and all of Roots' directors and officers, representing around 69% of total voting interest, have committed to vote in favour of the transaction. A special shareholders' meeting must now be organised to approve it.
