Boot Barn seeks to expand omnichannel reach with acquisition

Irvine, Calif. – Boot Barn Holdings Inc. is looking to expand its ability to serve the needs of omnichannel customers with a new acquisition.



The retailer has completed its previously announced purchase of Sheplers Inc. a western lifestyle company with 25 retail locations across the U.S. and a catalog and e-commerce business.



The acquisition is expected to generate $6 million to $8 million of annual synergies and be accretive to fiscal 2016 earnings (ended March 26, 2016), excluding estimated one-time transaction and integration costs of $14 million. The deal is also expected to be 10% accretive once integration is completed in calendar year 2016.



Boot Barn financed the acquisition and refinanced approximately $172 million of its and Sheplers’ existing indebtedness with an initial borrowing of $57 million under a new $125 million syndicated senior secured asset-based revolving Wells Fargo Bank credit facility. The company also secured a $200 million syndicated senior secured term loan from GCI Capital Markets LLC.



“The acquisition of Sheplers is a significant step forward in our omnichannel strategy,” said Jim Conroy, CEO of Boot Barn. “This acquisition provides us with opportunities to create a dual-brand online offering, leverage Sheplers’ domestic and international customer traffic, and generate operating efficiencies across the combined online businesses. It also enhances our store footprint and builds our position in key markets as we rebrand the Sheplers’ stores to the Boot Barn banner.”