Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Friday, September 22, 2017

Article Excerpt

ROOTS CORPORATION is a privately held Canadian clothing retailer focused on fashion sweats and other casual clothing. It also makes leather goods, including handbags, jackets and shoes. The chain has 116 stores in Canada, four in the U.S., and 136 others across Taiwan and China. Those Asian outlets are operated by a partner. Roots has now filed the preliminary paperwork for an initial public offering (IPO) on the Toronto exchange under the symbol ROOT. Private-equity firm Searchlight Capital Partners acquired 80% of the company in 2015 from its founders, Don Green and Michael Budman. The pair started the chain of clothing stores with one location in 1973. Searchlight now aims to raise up to $200 million through the IPO. None of the proceeds will go directly to the company, but rather to Searchlight Capital, Don Green, Michael Budman, and certain members of their families. In the 12 months ended July 29, 2017, Roots says its sales were $296.9 million; for the same period,…