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Wells Fargo Agents $125MM ABL Facility in Boot Barn Acquisition

June 30, 2015, 08:01 AM
Filed Under: Retail

Boot Barn Holdings, Inc. announced 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.

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.

Jim Conroy, Chief Executive Officer of Boot Barn, stated, “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.”

Boot Barn is a leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The company offers its customer base a wide selection of more than 200 work and lifestyle brands. With the addition of Sheplers, Boot Barn now operates 201 stores in 29 states, in addition to an e-commerce channel.

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