Canada Goose Holdings Inc (NYSE:GOOS, TSX:GOOS)’s US-listed shares climbed more than 14% in late-morning trading on Wednesday after CNBC reported that the luxury apparel retailer’s controlling shareholder, Bain Capital, has received bids to take the company private, citing unnamed sources.
Bain Capital, a private equity firm, has been looking to sell its stake in Canada Goose, which it acquired in 2013 when the company was reportedly valued at $250 million.
With today’s stock price increase, Canada Goose now has a market capitalization of about $1.35 billion, although down substantially from its peak market value of $7.7 billion in 2018.
The media outlet noted that Boyu Capital and Advent International have made verbal offers, valuing Canada Goose at eight times its 12-month average earnings before interest, taxes, depreciation and amortization.
Bain Capital is holding off on a decision until more offers roll in, according to CNBC’s sources.
Canada Goose shares have gained more than 38% year to date to its current price of $13.92.