Irvine, CA–Boot Barn Holdings, Inc. announced this week the completion of its previously announced acquisition of Sheplers, Inc. , a 115-year old western lifestyle company with 25 retail locations across the United States and an industry-leading e-commerce business.
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 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.
Jim Conroy, Boot Barn ceo, stated, “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 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.