Searchlight Capital Partners has made a majority investment in Roots in partnership with the company’s co-founders Michael Budman and Don Green who have maintained a minority equity position in the company.
Roots is one of Canada’s leading lifestyle brands and sells women’s, men’s, children’s, and baby’s apparel; leather bags; footwear; active athletic wear; belts, small leather goods; and home furnishings. Roots has 220 retail stores in Canada, the United States and Asia and also has an active ecommerce business. Roots maintains a state-of-the-art factory and distribution center in Toronto, both located near the company’s headquarters where all Roots products are designed. The company was founded in 1973 by Mr. Budman and Mr. Green, together with their wives, Diane Bald and Denyse Green (www.roots.com).
“Before making the decision to partner with Searchlight, Don and I had extensive discussions and meetings with the firm’s co-founders, Erol Uzumeri and Eric Zinterhofer, over a period of several months,” said Mr. Budman. “We were impressed by how well they understood and respected our brand. Not only do they have relevant experience, international expertise and financial resources to draw on, but they are also committed to Roots staying true to its longstanding values, culture and quality products.”
“Our investment will enable Roots to support its long-term growth ambitions,” said Canadian Searchlight co-founder Erol Uzumeri. “As one of the few iconic Canadian heritage brands, we see significant growth potential for Roots in both Canada and internationally across multiple distribution channels.”
Searchlight Capital Partners invests equity and debt in companies active in the telecom; communications, information and information technology services; business and financial services; industrial goods; and consumer sectors. The firm was founded in 2010 by its partners Oliver Haarmann, Erol Uzumeri, and Eric Zinterhofer. Searchlight is headquartered in London with additional offices in New York and Toronto (www.searchlightcap.com).
Toronto-Dominion Bank is providing debt financing for this transaction.
© 2015 PEPD • Private Equity’s Leading News Magazine • 10-28-15