Canada Goose Stock Rises 12% On Reports Of Take Private Bids
The stock of luxury parka maker Canada Goose (GOOS) is up 12% on reports that the company has received multiple offers to be taken private.
Specifically, there are media reports that Toronto-based Canada Goose’s controlling shareholder, Bain Capital, has received several bids to take the company private.
Private equity firm Bain Capital has let it be known that it wants to offload its stake in Canada Goose and Wall Street investment bank Goldman Sachs (GS) is handling the sale.
According to reports, other private equity firms Boyu Capital and Advent International have made verbal offers to acquire Canada Goose at eight times its 12-month average earnings, translating into a valuation of around $1.35 billion U.S.
Currently, Canada Goose has a market capitalization of $1.18 billion U.S.
Bain Capital is waiting to decide on the Canada Goose sale until it receives more offers but is hoping to conclude a deal within two months.
Canada Goose’s stock has struggled since the company went public in 2017. Its market capitalization peaked at $7.70 billion U.S. in 2018 and has been steadily deteriorating since.
Bain Capital reportedly paid $250 million U.S. for a controlling stake in Canada Goose back in 2013 when the parka maker was still privately held.
Prior to today (Aug. 27), GOOS stock had risen 23% this year to trade at $12.17 U.S. per share in New York.
However, the gains this year are largely based on anticipation of a company takeover. Over the last five years, Canada Goose’s share price has declined 52%.
