Roots (ROOT.TO) entered into an agreement to be acquired by global brand management company Marquee Brands through its strategic operating partner, the companies said late Thursday.
As part of the transaction, Marquee Brands has partnered with JM&A Design and Development, led by Canadian retail executives Joseph Mimran and Frank Rocchetti.
JM&A will serve as the core operating partner for Roots, which will continue to be operated in Canada, according to the companies.
Marquee Brands will focus on the Canadian outdoor and lifestyle brand's global expansion, brand management and development of new product categories.
Under the deal, Roots shareholders will receive C$4.10 per share in cash. The offer represents a 36% premium to Roots' closing share price on March 2, the last trading day before the retailer announced a strategic review.
The transaction is expected to close in the fourth quarter, after which Roots will operate as a privately held company.