Boot Barn steps up omnichannel strategy
Boot Barn has taken a significant step forward in its e-commerce strategy now that its acquisition of Sheplers is complete.
The Sheplers acquisition represents a significant step forward for Boot Barn’s omni-channel strategy, growing Boot Barn’s e-commerce penetration from 4% to 15%. The addition of Sheplers’ e-commerce platform provides opportunities to create a dual brand online offering, leverage Sheplers’ domestic and international customer traffic, and create operating efficiencies across the combined online businesses.
Jim Conroy, CEO of Boot Barn, said: “We are extremely pleased to have closed on our acquisition of Sheplers and appreciate the hard work of the Boot Barn and Sheplers’ teams for their efforts in completing this transaction in a timely manner. The acquisition of Sheplers is a significant step forward in our omni-channel strategy. 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.”
The company 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 credit facility for which Wells Fargo Bank, National Association, acted as agent, and a $200 million syndicated senior secured term loan for which GCI Capital Markets LLC acted as agent.
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, and to be approximately 10% accretive post integration, which is expected to be completed in calendar year 2016.
By rebranding the Sheplers stores to the Boot Barn banner, consistent with the strategies of its prior two acquisitions, Boot Barn will enhance its store footprint by adding eight new retail markets and build its position in Texas and Colorado.
The businesses are highly complementary, with a similar western lifestyle focus, customer base and store experience, which will allow Boot Barn to extend key merchandise categories and brands across the chain and access a combined database of more than five million customers.
Bob Myers, CEO of Sheplers, said: “Our ability to grow the largest online business in the industry started with building upon our loyal customer base from our long-standing catalog format. Joining the Boot Barn family will allow Sheplers to provide value to a larger customer base through both in-store and online channels and provide more opportunities for many of our associates both in the field and in our corporate office.”
The transaction has been approved by boards of directors of both companies, as well as the required majority of Shepler’s stockholders, and is expected to close by the week of June 29.
With the addition of Sheplers, Boot Barn will operate 200 stores in 29 states, in addition to an e-commerce channel, including bothwww.bootbarn.com and www.sheplers.com.
