JP Morgan, Piper Jaffray and Jefferies are slated to lead the offering disclosed in an SEC filing Monday. The deal would include the sale of both primary shares and selling by existing investors, the filing indicates.
Boot Barn is 89.1% owned by Freeman Spogli & Co, a private equity firm dedicated to investing in consumer-related and distribution companies (other notable investments include El Pollo Loco, HH Gregg and Petco). Freeman bought its shares in Boot Barn as part of a 2011 recapitalisation. Other Boot Barn shareholders include Capitala Finance Corp (3%), Hartford Financial Services (1.5%) and Brookside Mezzanine Partners (1.7%).
With 155 stores in 24 US states, Boot Barn grew revenues 28% to US$82.5m in the 13 weeks ended June 28, 2014, and by 48% to US$345.9m in the fiscal year ended March 29, 2014.
Founded in 1978, the company has strung together 19 straight quarters of same-store sales growth averaging 11.6% per quarter and impressive same-store sales growth of 6.7% in fiscal 2014.
Store numbers have grown considerably from 86 stores in 2012, including 14 stores resulting from organic growth and 55 from acquisitions, including RCC in 2012 and Baskins last year. Boot Barn says it sees potential to grow store numbers at least 10% annually to at least 400, including store openings in existing and new markets. The US western and work wear markets represented about $8bn and $12bn in sales respectively in 2013, according to the company’s filing.
The company is carrying total debt of US$172.6m and little spare cash, the former representing more than 4x last year’s adjusted Ebitda of US$40.3m.
Boot Barn plans to list on the NYSE under the symbol “BOOT”.
It first filed confidentially on June 2013. The deal could conceivably launch once a required 21-day public viewing period is satisfied.
