Canada Goose Shares Soar on Private Equity Takeover Reports
Bain Capital is reportedly fielding offers valuing the luxury parka maker at up to $1.4 billion, sparking a more than 14% rally in the company's stock.
Shares of Canada Goose Holdings Inc. (GOOS) surged more than 14% after reports emerged that controlling shareholder Bain Capital has received multiple takeover bids from private equity firms, signaling renewed investor appetite for luxury retail brands.
The unsolicited offers value the iconic winter-wear company between $1.35 billion and $1.4 billion. The news, which broke recently, sent the company's stock climbing 14.42% on elevated trading volume as investors priced in the possibility of a premium buyout.
According to sources familiar with the matter, several prominent investment firms are in contention. The potential suitors reportedly include Boyu Capital and Advent International, with bids starting around the $1.35 billion mark. Other interested parties are said to include Chinese apparel giant Bosideng International and a joint team from FountainVest Capital and Anta Sports, highlighting significant interest from Asian investment groups.
Bain Capital, which took Canada Goose public in 2017 but retains a controlling stake, is said to be considering the offers. While neither Bain nor Canada Goose has officially commented on the reports, the process is expected to move forward over the coming months. Analysts suggest that potential buyers could complete their due diligence within two months, potentially leading to a finalized deal in the fall.
The strong interest from private equity underscores a belief in the enduring value of established luxury brands, even amid a more cautious consumer spending environment. It also points to a broader trend of cross-border dealmaking, as international investors, particularly from Asia, seek to acquire Western brands with a strong global presence and a growing customer base in markets like China.