Canada Goose draws take-private interest valuing it at $1.35 billion as Bain Capital weighs exit

Published Tue, Aug 26 20259:42 PM EDTUpdated Thu, Aug 28 20251:29 AM EDT

Anniek Bao @in/anniek-bao-460a48107/@anniekbyx

Key Points

Canada Goose's controlling shareholder, Bain Capital, has drawn interest aimed at taking the luxury parka-maker private.
Potential buyers have valued the company at nearly $1.4 billion, according to people familiar with the matter.
U.S.-listed Canada Goose shares rose over 16% Wednesday after CNBC's report.

Canada Goose's controlling shareholder, Bain Capital, has drawn interest from several parties looking to take the luxury parka-maker private at a valuation of about $1.4 billion, according to three people familiar with the matter. Bain Capital is looking to sell its holding in Canada Goose, the people said, with Goldman Sachs advising on the sale. Ongoing discussions are centered around taking the Toronto- and New York-listed company private, according to the 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. The company's market value was pegged at $1.18 billion as of Tuesday. Other interested buyers include Bosideng International , a Shanghai-based maker of down jackets, and a consortium formed by private-equity firm FountainVest Capital and Anta Sports Product, the people said. The duo had led a deal in 2019 to acquire Finland's Amer Sports, owner of Wilson tennis rackets. The interest in taking Canada Goose private is not surprising, according to several industry watchers, as going private would give buyers greater autonomy to manage the company that has seen slowing growth, without the extra scrutiny that comes with stringent financial disclosures mandated for public enterprises. Bain Capital is holding off on a decision until more offers roll in, the people said, adding that once a buyer is selected, due diligence typically takes less than two months before the deal is signed. U.S.-listed Canada Goose shares rose over 16% Wednesday after CNBC's report, taking it's year-to-date gains to about 41%, and lifting its market cap to nearly $1.4 billion. Though a far cry from its 2018 peak of $7.7 billion, a year after it went public, the current valuation represents outsized returns for Bain from the reported $250 million level when it took control in 2013. As of March, Bain owned around 60.5% of Canada Goose's multiple voting shares, which carry 10 times the voting power of the company's publicly traded stock, giving Bain 55.5% of total voting power at the firm, according to a regulatory filing . Bain Capital declined to comment, while Canada Goose did not respond to CNBC's request for comment. A defining exit Bain's potential exit comes as Canada Goose has been struggling to sustain growth momentum in several key markets, with analysts questioning its brand positioning and marketing strategy at a time when consumers are becoming cautious about big-ticket apparel purchases. For the year ended in March, the company's revenue fell 1.1% on a constant currency basis from a year earlier to $1.35 billion Canadian dollars, as sales in its crucial markets including Canada, China and the EMEA region — comprising Europe, Middle East, Africa and Latin America — declined 2.4%, 1.7% and 12.1%, respectively. Global revenue had risen 23.2% in 2022 , 10.9% in 2023 and 9.6% in 2024 . The sales decline in China — which hosts nearly half of the company's global stores — signals a sharp downturn compared with a jump of 47% in sales in fiscal year 2024, when China overtook Canada as the company's biggest market. In the latest quarter ending in June , a seasonally slow period for the winter-coat maker, Canada Goose posted a bigger-than-expected net loss of CA$125.5 million, widening from a CA$74 million loss in the same period last year. Bain's 12-year control of Canada Goose has far exceeded the typical private-equity investment cycle of roughly 5 to 10 years, making a potential exit a natural next-step. "Bain's Canada Goose deal represents a classic PE fund cycle — acquiring the brand, taking it public and now looking to exit," said an industry veteran who did not want to be named, adding that an exit after 12 years is far from ideal. "The problem with Canada Goose is that it neither does functional wear particularly well nor fashion particularly well from the consumer perspective," said Yaling Jiang, founder of consumer consultancy firm ApertureChina. The company tends to settle for mid-tier brands and celebrities in their marketing, straying from its core strength in winterwear, Jiang added. "The brand feels rootless and faceless." She also pointed to inconsistency in Canada Goose's messaging and actions: "It's awkward when they bank on lifelong quality and then they face a number of quality scandals in China ... and when they call themselves luxury fashion but many consumers expect to buy them at [mass market] outlets," Jiang said. Canada Goose has flagged that higher U.S. tariffs could raise raw material and compliance costs, potentially leading to price hikes that risk eroding the company's competitiveness in some markets. While withholding its current fiscal year's forecast over uncertain trade environment, the company said it was in good shape to manage the impact of tariffs, as 75% of its items are made in Canada and are currently exempt from U.S. tariffs due to compliance with the United States-Mexico-Canada Agreement. The outerwear maker is reportedly pushing into sweaters, sunglasses and footwear as it seeks to transform from being a parka specialist to an all-season brand with sustained sales during off-peak seasons. Correction: The story has been updated to better reflect that the discussions are in early stages, and no firm bids have been made.