Marquee Brands acquires Canadian fashion brand Roots

JM&A will handle the design, production, distribution, retail, and e-commerce operations for Roots in Canada and the U.S., including more than 100 stores.

Marquee Brands, which owns brands such as Roberto Cavalli, Laura Ashley, and BCBG, will focus on Roots' global expansion and developing new product categories.

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Marquee Brands is working with JM&A Design and Development Inc. (JM&A), led by Canadian retail experts Joseph Mimran and Frank Rocchetti. JM&A will be Roots' main operating partner and will continue to run the business in Canada.

Under the deal, Roots shareholders will receive C$4.10 in cash for each common share, which is a 36% premium over the company's closing share price on March 2, before the strategic review was announced.

In its latest trading update, Roots said first-quarter sales rose 6.5% to $42.6 million for the period ended May 2. The growth came from both its direct-to-consumer and wholesale businesses.

"This transaction is a strong endorsement of the Roots brand and the momentum behind our business,” said Meghan Roach, president and CEO of Roots.

“Over the past several years, we have restored Roots to a position of strength, with a distinctive Canadian identity that resonates with customers here and around the world. This transaction brings together Marquee Brands’ global brand-building platform and JM&A’s operational leadership to position Roots for its next chapter of growth.

“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, CEO of Marquee Brands.

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