Boot Barn Holdings Inc. (NYSE: BOOT) is buying western apparel company Sheplers Inc. for $147 million in cash.
Sheplers, which sells cowboy hats, boots, jeans and other apparel, has 25 retail locations in the U.S. and an e-commerce business. For the year ended March 28, the business had $157 million in sales, including $66 million in e-commerce sales, and adjusted Ebitda of $14.9 million.
For Boot Barn, the deal builds up its omnichannel strategy and increases its e-commerce penetration from 4 percent to 15 percent. The Sheplers buy gives the company an opportunity to create dual brand online offerings, leverage Shelpers' customer traffic and create operating efficiencies.
Boot Barn, headquartered in Irvine, California, is also a Western apparel company, and went public in October. For more on the business, read Freeman Spogli and Brookside Mezzanine Discuss Teaming Up for Boot Barn.
Retailers have been upping their e-commerce game as more and more customers shop online, which in turn has inspired dealmaking. In May, IBM invested in travel and e-commerce businesses WayBlazer and Sellpoints, and in April, NetSuite Inc. (NYSE: N) paid $200 million to buy email marketing company Bronto Software. For more on the trend, see Retail Reboot: Investors Snatch Up E-Commerce Services.
There have been several other retail deals recently. In May, Capmark Financial Group agreed to buy Orchard Brands Corp., which sells apparel for seniors, for $410 million. Before that, also in May, Hot Topic Inc. agreed to buy pop culture-themed retailer Geeknet Inc.