Canada Goose prices IPO to raise up to $320M at $1.71B valuation

Canada Goose Holdings Inc. has priced its proposed initial public offering (IPO) and concurrent secondary offering by Bain Capital and Canada Goose’s CEO Dani Reiss.

Canada Goose Holdings Inc. will issue 20,000,000 subordinate voting shares, including 12,851,000 subordinate voting shares to be sold by Bain Capital and Reiss, at a price range between CDN $14.00 and CDN $16.00 per subordinate voting share for gross proceeds of between $280 million and $320 million. The underwriters have been granted over-allotment option to purchase up to an additional 3,000,000 subordinate voting shares from the selling shareholders.

Canada Goose has applied to list its subordinate voting shares on the Toronto Stock Exchange in Canada and New York Stock Exchange in the United States under the ticker “GOOS”.

Bain Capital and Reiss currently control 70% and 30% of Canada Goose outstanding shares. Canada Goose will have 107,149,000 shares outstanding following the offering, valuing the company at up to $1.71 billion. Bain Capital and Reiss will remain as controlling shareholders with 61,004,000 and 26,145,000 multiple voting shares respectively.

In December 2013, Bain Capital acquired 70% of Canada Goose, in a deal valued Canada Goose with an enterprise value of $209.7 million. The transaction was supported by debt financing of $99.6 million. Bain Capital is selling 8,996,000 shares for up to $143.94 million to fully recover its initial equity investment.

For the year ended March 31, 2016, Canada Goose reported $290.8 million revenues and $26.5 million in net income.

As of December 31, 2016, Canada Goose employed 1,187 manufacturing employees and operated five production facilities in Toronto, Winnipeg and Montreal, manufacturing approximately one-third of its products in-house.

photo credit: Canada Goose

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.