Roots Goes Private at C$4.10 a Share as CEO Roach Steps Down

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Roots Corporation has completed its go-private transaction, and Meghan Roach has stepped down as president and chief executive. The company announced both on Monday. Roach will stay on in an advisory role to support what it called a smooth transition.

Under the plan of arrangement, Marquee Brands, acting through its strategic operating partner JM&A Design & Development Inc., bought all outstanding Roots common shares for C$4.10 each in cash. The buyer took 39,197,166 shares, which was 100% of those outstanding just before closing. Total consideration came to C$160,708,380.60.

What happens to the listing

Roots expects its shares to be delisted from the Toronto Stock Exchange shortly. It also plans to apply to stop being a reporting issuer in each Canadian province and territory. The buyer will file an early warning report, which will appear under the company's profile on SEDAR+.

The purchaser and Roots amalgamated under the Canada Business Corporations Act. The combined business continues as one corporation under the name Roots Corporation.

Roach's tenure

Roach has led Roots since 2020. She first joined the company in 2019 as interim chief financial officer.

"It has been a privilege to lead Roots and to work alongside such a talented and dedicated team," Roach said. "With the transaction complete, this is the right moment for me to step aside." She said she has every confidence in the team's ability to carry the brand forward.

Erol Uzumeri, the former chair of the Roots board, called Roach "an outstanding leader" and said Roots is "a stronger company because of her." He said she steered the company through "an extraordinary period of change" and delivered a result that reflects the full value of what she built.

Roots was established in 1973 and runs more than 100 locations in Canada, two stores in the United States and the roots.com online shop. Partners operate more than 100 further stores in Asia, and the brand has its own storefront on Tmall in China. It also sells wholesale to other retailers and licenses the brand to selected licensees.

Source: Roots Corporation