Canada Goose flies as Bain Capital Fields Take-Private Offers
Bain Capital, the company's main shareholder, received bids to take the company private.
Quick overview
- Canada Goose's stock surged nearly 15% after reports of Bain Capital receiving bids to take the company private.
- Bain Capital is exploring a sale of its stake with Goldman Sachs, with verbal bids from Boyu Capital and Advent International valued at approximately $1.35 billion.
- The company's valuation has increased from $11 billion to around $137 billion following the rise in share price.
- Despite the gains, Canada Goose's current valuation remains below its 2018 peak of $7.7 billion.
Canada Goose’s stock rose nearly 15% Wednesday after a CNBC report revealed that Bain Capital, the company’s main shareholder, received bids to take the company private.
Sources told CNBC’s Anniek Bao that Bain Capital is exploring a sale of its stake with consulting firm Goldman Sachs.
Anonymous sources indicated the offers aim to privatize the Toronto-listed brand. Canada Goose reportedly received verbal bids from Boyu Capital and Advent International, valued at eight times its 12-month average EBITDA, roughly $1.35 billion.
Bain Capital is holding off on a decision until more offers arrive, with a potential buyer expected to undergo due diligence in two months before finalizing a deal. Following the increased share price, Canada Goose’s valuation has surged from $11 billion to approximately $137 billion.
Currently listed in New York, the company’s shares have climbed over 21% this year. This valuation marks a substantial gain for Bain, which initially invested around $250 million in 2013 when it took control. It is still below its 2018 peak of $7.7 billion, a year after it went public.
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