Canada Goose, which has been family owned since its founding more than 55 years ago, completed a definitive agreement to sell a majority stake in the company to Bain Capital.
Dani Reiss, grandson of the company's founder, will remain president and CEO of Canada Goose, and continue to own a significant minority stake in the company.
Financial terms of the private transaction were not disclosed, but a recent initial public offering by the Italian company Moncler indicates that Canada Goose could be worth as much as $1.2 billion. A maker of luxury ski and fashion apparel, Moncler announced it had completed pricing of an initial public offering of stock on an Italian stock exchange at €10.20 per share, valuing it at about $3.5 billion, or eight times 2012 sales. Even at that lofty multiple, institutional investors placed orders for 1.86 billion shares of the stock, or 31 times what was available for sale. Reiss told The B.O.S.S. Report earlier this year that Canada Goose was on track to reach revenues of $150 million this year.
Canada Goose has been growing rapidly in recent years as its iconic fur-trimmed parkas and down coats originally designed for use in the extreme weather of northern Canada – have become popular fashion items. The company greatly expanded its production capacity in 2012 and said this summer it was on pace to grow U.S. sales 25 percent to $30 million in 2013.
“With this investment, we’re able to amplify what has driven our success for the last 15-plus years: delivering the best and warmest jackets to the rest of the world all proudly made in Canada,” Reiss said of Bain Capital’s investment.
Bain Capital has a long history of successfully investing in retailers and consumer brands. In 2002 the company acquired the German outdoor apparel brand Jack Wolfskin for €64 million and flipped it three years later for €93 million. It currently owns stakes Bombardier Recreational Products, Burlington Coat Factory, Guitar Center and Toys R Us.
“Dani and the Canada Goose management team have already accomplished a great deal in establishing the premium outerwear category and creating a unique global brand that exudes authenticity,” said Ryan Cotton, a principal at Bain Capital.
Canaccord Geunity Corp. served as financial advisor, Deloitte LLP served as accounting advisor and Torkin Manes LLP served as legal counsel to Canada Goose. Ropes & Gray LLP, Stikeman Elliott LLP, Loyens & Loeff Luxembourg S.à r.l. and Maples and Calder served as legal counsel, and PwC LLP served as accounting advisor to Bain Capital. Financing was provided by CIBC.