New York-listed shares of Canada Goose rose over 16% Wednesday after a CNBC report that the winter-clothing makers controlling shareholder, Bain Capital, had drawn interest from firms seeking to take the company private.
Private equity firm Bain Capital is looking to sell its holding in Canada Goose, sources told CNBCs Anniek Bao, with Goldman Sachs advising on the sale.
The offers aim to take the company private, according to sources who asked not to be named as the information is confidential.
Private equity firm Boyu Capital has made a verbal offer, while Advent International has held discussions with Bain, both valuing Canada Goose at around eight times its 12-month average earnings before interest, taxes, depreciation and amortization, translating into a valuation of about $1.35 billion, the people said.
Bain Capital is holding off on a decision until more offers roll in, the sources said, adding that once a buyer is selected, due diligence is expected to take less than two months before the deal is signed.
Accounting for Wednesdays gains, Canada Gooses U.S. shares are up 41% so far this year, raising the companys market cap to $1.4 billion.
Though still a far cry from its 2018 peak of $7.7 billion, a year after it went public, the companys current valuation represents outsized returns for Bain from the reported $250 million level when it took control in 2013.
Stock chart icon
