Marquee Brands snaps up Roots, taking outerwear label private

Roots has found a new home. The Canadian outdoor and lifestyle brand has been snapped up by Marquee Brands in a deal intended to both preserve Roots’ heritage and grow its global presence. The change of hands follows a strategic review of the business, which involved a sale process that attracted a number of interested parties.

Marquee, however, has emerged as the frontrunner with a transaction through which shareholders will receive 4.10 Canadian dollars per common share in cash, a 36 percent premium to the closing price as of March 2, 2026. Around 69 percent of Roots’ total voting interest, including that of Searchlight Capital Partners, L.P. and Kernwood Limited, have backed the deal.

Moving into a private ownership structure was also described as “optimal” for Roots, particularly as it continues to pursue “long-cycle investment decisions in its next chapter of growth”. The brand’s board is recommending shareholders to vote in favour of the deal at an upcoming special meeting in October, after determining the “fairness” of the all-cash consideration, with two-thirds of votes needed for approval. The deal will also need to pass regulatory requirements.

Roots’ operations will come under the guidance of Marquee’s operating partner, JM&A Design and Development, which will continue to lead the business within Canada. The firm will oversee the design, development, manufacturing and distribution of men’s and women’s lifestyle apparel, and will also be responsible for Roots’ retail and e-commerce operations across Canada and the US, including the brand’s over 100 North American stores.

Marquee, meanwhile, said it would focus on “global brand stewardship and expansion, as well as new category development”. Such a model ensures Roots “remains anchored in Canadian culture”, Marquee CEO, Heath Golden, said. “With that foundation in place, we see significant global opportunity to extend Roots into new categories, markets and consumer segments, while remaining true to all that makes the brand distinctive,” Golden added.

Roots eyes global expansion and further product diversification

For Roots specifically, the acquisition serves as a reflection of confidence in its turnaround, which has involved restoring the brand to a "position of strength”, CEO and president Meghan Roach said. The brand launched its strategic review in March, after swinging back to profit for FY25, when net income came to 4.7 million dollars, compared to a loss of 33.4 million dollars in the year prior. Despite the more positive yearly trajectory, the company remained in the red for Q1 of the current year, when net loss came to 10.1 dollars, widening on the 7.9 million dollar loss reported in the same period of FY24.

Its transformation is evolving under Roach, who said that the company was continuing to diversify its profit offering across both lifestyle and activewear, contributing to an uptick in sales. Roots will also be transitioning its distribution centre to Metro Supply Chain, alongside broader efforts towards disciplined executions and building long-term value.

Adding to her comments on the acquisition, Roach continued: “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. Roots remains proudly Canadian, and we are excited to build on our heritage and pursue the significant growth opportunities ahead.”