Two Private Equity Firms Bid on Canada Goose, Valuation Nears $1.35B

 

The sale of Canada Goose has seen the latest developments.  

 

Recently, according to reports from CNBC, Reuters, and Hong Kong’s *Sing Tao Daily* on August 27, Canada Goose’s controlling shareholder, Bain Capital, has officially appointed Goldman Sachs as the sell-side advisor to initiate a “full or partial” sale process for its 60.5% stake.  

 

The deadline for the first round of non-binding bids is September 15, with an expected signing of the Share Purchase Agreement (SPA) and completion of the transaction by year-end.  

 

Currently, potential buyers in the due diligence phase are divided into two camps:  

• Pure PE Camp: Boyu Capital + Advent International  
• PE + Industrial Consortium: Bosideng + Anta Sports + FountainVest Partners  

Sources indicate that Boyu Capital and Advent International have submitted verbal acquisition intentions. The two PE giants valued Canada Goose at approximately 8 times its past 12-month average EBITDA, translating to about $1.35 billion.  

 

It is understood that this $1.35 billion valuation is below the luxury sector’s average transaction multiple of 11-13 times over the past five years but above Canada Goose’s current secondary market valuation of 6.5-7 times.  

 

To address domestic Canadian public opinion and union pressures, within three years post-transaction, regardless of which consortium acquires it, the headquarters of Canada Goose is unlikely to relocate from Toronto, and the proportion of local Canadian manufacturing will remain at least 30%.  

 

Bain Capital acquired a 70% stake in Canada Goose for $250 million in 2013, later reducing its holdings after the 2017 IPO, and currently holds 60.5% (corresponding to a market value of about $1.2 billion).

 

 

If sold for $1.35 billion, Bain would net approximately $820 million after transaction costs and debt, yielding a cumulative return of about 9.8 times and an IRR of around 18%, meeting the expected return threshold for its 2013 fund (Bain Capital Fund XI).  

 

Additionally, Bain Capital Fund XI is set to enter its liquidation period in 2026, with its limited partners (LPs), including the California Public Employees’ Retirement System (CalPERS) and Singapore’s Government Investment Corporation (GIC), repeatedly urging the general partner (GP) to “quickly realize non-core assets.”  

 

In recent years, Canada Goose has faced performance pressures, reporting a net loss of CAD 125.5 million in Q2 of fiscal year 2025, the largest single-quarter loss since its IPO. Bain Capital also believes “the current valuation is nearing a cycle high,” making this an opportune time to exit in line with fund interests.