Roots Sells Majority Stake to Searchlight Capital Partners
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Goodmans represented Roots Canada Ltd. in connection with the sale of a majority stake in Roots to Searchlight Capital Partners, L.P. The co-founders Michael Budman and Don Green will continue to retain significant equity ownership. The investment will support the brand's next phase of growth. The terms of the agreement were undisclosed. The Toronto-Dominion Bank, as Agent and as part of syndicate of financial institutions, provided a term and revolving facility in favour of Roots Corporation, a newly formed subsidiary of Searchlight.
Established in Toronto in 1973, Roots is one of Canada’s leading lifestyle brands with 245 retail locations in Canada, the United States and Asia, along with a robust e-commerce business. Roots also has a state-of-the-art leather goods factory and design centre, which is located in Toronto.
Searchlight is a global private investment firm with offices in Toronto, New York and London.