Canada Goose Holdings (GOOS) stock value witnesses a significant 13% surge in the early trade on Wednesday. The increase comes after a report suggesting that Bain Capital, the controlling shareholder, has received takeover bids valuing the high-end winter jackets' maker at roughly $1.35 billion. The report was based on information from insider sources named by CNBC. These sources mentioned that Bain Capital is considering selling its Canada Goose stake, with several present offers that could take the New York and Toronto-listed company private.
The bids come from private-equity firms Boyu Capital and Advent International. CNBC specified that they have presented "verbal offers" that value Canada Goose at eight times its 12-month average EBITDA, leading to approximately $1.35 billion valuation. The other interested bidders include Shanghai-based down jacket manufacturer Bosideng International and a consortium formed by private equity firm FountainVest Capital and Anta Sports Product.
No immediate comment was received from either Canada Goose or Bain Capital regarding the matter. According to regulatory filings, Bain held a controlling stake of 55.5% in the Canada Goose's combined voting power as of March 30th. On Tuesday, Canada Goose shares saw a rise by more than 3% after Baird analysts elevated the stock from "neutral" to "outperform". The analysts increased their price prediction from C$18 to C$24 believing the company's "improved product, merchandising focus, and marketing investment have spurred better brand momentum." The stock value of the company has seen more than a 20% increase this year.