Roots begins strategic review that could include sale of iconic Canadian company
· Toronto Sun
Is Roots for sale?
The iconic Canadian footwear, leather goods, clothing and lifestyle company that was founded in 1973 has announced its board of directors initiated a strategic review to “identify opportunities to maximize value for all shareholders.
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“During the strategic review, the board will analyze and evaluate a range of alternatives, including but not limited to a sale of the company,” said the company in a statement.
Roots said it decided to publicly announce the strategic review as part of its “value-maximization strategy while continuing to execute its current business plan.”
Financial, legal advisers hired
The company said it doesn’t intend to disclose developments with respect to the strategic review “unless and until the board has approved a specific transaction or otherwise determines that disclosure is appropriate or required by law.”
As this strategic review proceeds, the company said the Roots management team “remains dedicated to acting in the best interests of the company and to executing on its key objectives.
“Roots remains unwavering in its commitment to its customers, partners and employees in its ongoing operations,” they said.
J.P. Morgan Securities Canada Inc. has been hired as its financial adviser and Torys LLP as its legal adviser for the strategic review.
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Founders met at Algonquin Park in 1960s
Roots added that those hirings “should not be viewed as an indication that any specific process or transaction will be pursued.”
The company said the strategic review won’t necessarily “result in any specific action, transaction or agreement or if a transaction is undertaken, as to its timing, completion or terms.”
Roots describes itself as a “lifestyle brand” that started when its founders Michael Budman and Don Green met at summer camp in Algonquin Park in the 1960s.
“Roots has become a global brand with over 100 corporate retail stores in Canada, two U.S. stores and an e-commerce platform, roots.com,” the company said. “It also has more than 100 partner-operated stores in Asia and operates a dedicated Roots-branded storefront on Tmall.com in China.”