New York-listed shares of Canada Goose rose by nearly 7% in premarketing trading, after a CNBC report that the winter-clothing maker’s controlling shareholder, Bain Capital, has received bids to take the company private.
Private equity firm Bain Capital is looking to offload its holding in Canada Goose, sources told CNBC’s Anniek Bao, with Goldman Sachs advising on the sale.
The offers aim to take the Toronto-listed company private, according to sources who asked not to be named as the information is confidential.
Boyu Capital and Advent International have made verbal offers, valuing Canada Goose at eight times its 12-month average earnings before interest, taxes, depreciation and amortization, translating into a valuation of around $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.
The premarket share price rise will give Canada Goose a valuation of $1.29 billion, up from $1.1 billion ahead of CNBC’s reporting, according to Refinitiv data. Canada Goose’s New York-listed shares have gained over 21% so far this year.
Though still a far cry from its 2018 peak of $7.7 billion, a year after it went public, the company’s current valuation represents outsized returns for Bain from the reported $250 million level when it took control in 2013.
