Roots, the iconic Canadian heritage outdoor and lifestyle brand, will go private and be acquired by American company Marquee Brands, Roots Corp. announced on Thursday.
Marquee Brands, a brand management company that operates 24 brands including Roberto Cavalli, BCBGMAXAZRIA, Martha Stewart, Laura Ashley and more, will acquire Roots through operating partner JM&A Design and Development Inc., led by renowned Canadian retail experts Joe Mimran and Frank Rocchetti.
The company said the transaction is "designed to preserve all that makes Roots uniquely Canadian, while bringing the brand to more consumers around the world."
In an interview, Roots chief executive Meghan Roach said the deal is "a very Canadian transaction, and Canadians should, if anything, be able to get even more Canadian exposure" with someone like Mimran at the helm of the deal.
"The way people should think about this is that it's about taking a great Canadian brand to a bigger platform and a bigger stage," Roots chief executive Meghan Roach told the Financial Post on Friday. "So, if I was a Canadian, I'd be very excited about that because I think that Canadian brands really resonate worldwide, and sometimes it's great to have help to be able to get them there. And I think that's what we're looking at today."
Roots shareholders will receive $4.10 per common share in cash, representing a 36 per cent premium to the closing price as of March 2, the last trading day prior to the announcement of the company's strategic review process by the company's board of directors.
"Taking on Roots is an incredible honour, and our strategic partnership with JM&A ensures the brand remains anchored in Canadian culture," said Heath Golden, chief executive of Marquee Brands, in a press release. "With that foundation in place, we see significant global opportunity to extend Roots into new categories, markets and consumer segments, while remaining true to all that makes the brand distinctive."
Roots said JM&A will serve as core operating partner of Roots and oversee the design, development, manufacturing and distribution of men's and women's lifestyle apparel and assume responsibility for retail and e-commerce operations across Canada and the United States, including the Roots fleet of more than 100 North American stores.
Meanwhile, Marquee Brands will "galvanize the brand's global growth," focusing on global brand stewardship and expansion, as well as new category development, it said.
Roach said Marquee will be able to use their existing relationships to expand the Roots brand into new markets, while also growing its product portfolio.
The company said Roots will remain in Canada, "guided by Canadian operating leadership who understand the Roots customer as well as the brand's heritage and its enduring place in Canadian culture."
"Few brands are as deeply connected to Canada's identity as Roots," JM&A president and creative director Mimran, who is best known for founding the Club Monaco and Joe Fresh brands and previously starring in television series Dragons' Den , said in a press release.
Mimran said the opportunity is to build from Roots' strength, "while remaining true to the character that has made Roots so distinctive."
"Frank and I look forward to leading the business from Canada in partnership with Marquee Brands and positioning the brand for its next phase of growth," he added.
The companies did not disclose the ownership percentages between JM&A and Marquee Brands, but assured the deal is "very much a partnership amongst them."
The company said private ownership provides the optimal structure for Roots to pursue long-cycle investment decisions in its next chapter of growth, with its headquarters remaining in Toronto.
Roach said there's no imminent closures planned as part of the transaction.
"(It will be) business as usual for the next couple of months, as there's a time between signing and closing because we're a public company," she said. "Going forward, the strategy of what the store base looks like is really just a longer term discussion on what's best for the Roots brand, and no different than the conversations we've had previously."
While operations will remain in Canada for the short term, Roach said that for the longer term, "it always is about what's best for the business and the brand" and the continuation of investing behind growth.
"And so, just with every normal business, there will continue to be modifications and improvements as we go forward," she added.
Established in 1973, Roots started from a small cabin in northern Canada and has become a global brand operating over 100 locations in Canada, two stores in the United States, and roots.com. The brand is best known for its apparel, leather goods, footwear and accessories.
The company expects to hold a special meeting of shareholders in October, with closing targeted for the fourth quarter of 2026, subject to regulatory approvals.
Upon completion, its shares will be delisted from the Toronto Stock Exchange and the company will cease to be a reporting issuer in each of the provinces and territories of Canada.
