Roots Canada, one of the country’s most recognizable clothing brands, said on Monday its co-founders have sold a controlling stake in the company to U.S. private equity firm Searchlight Capital Partners to spur the brand’s next phase of growth.
Michael Budman and Don Green, who co-founded the brand back in 1973, will remain actively involved in the company and will be substantial shareholders, said Toronto-based Roots.
The company with its distinctive beaver logo, which has 245 retail locations spread across Canada, the United States and in parts of Asia, did not disclose the terms of the deal.
“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,” said Searchlight co-founder Erol Uzumeri, in a statement.
Update: Prior to co-founding Searchlight in 2010, Uzumeri was head of the private equity group at the Ontario Teachers’ Pension Plan.
(Reporting by Euan Rocha; Editing by Alan Crosby)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo (right to left): Roots Co-Founder Michael Budman; Searchlight Co-Founders Erol Uzumeri and Eric Zinterhofer; and Roots Co-Founder Don Green
Photograph by Ilich Mejia (CNW Group/Roots Canada Ltd)