Canada Goose draws take-private bids valuing it at $1.35 billion
Shanghaı, China – December 02: A citizen walks on 2 December 2021 by a Canadian goose stores in Shanghai, China.
Visual Chinese Group | Getty Images
Canada Excavation According to the controller, Bain Capital, who controls the shareholder Bain Capital, received offers aimed at receiving the luxury park manufacturer.
Bain Capital wants to evacuate the Holding of Canada Goose with Goldman Sachs’s advice on sales. All existing offers aim to customize the company listed in Toronto and New York, according to sources that want to be called information.
Private capital companies, Capital and Advent International, interest, tax, depreciation and depreciation before the average 12 -month average earnings, eight floors, said that a valuation of approximately 1.35 billion dollars, he said.
Among other interested buyers Bosideng InternationalThere was a Consortium-Greatness created by FountainVest Capital and Anta Sports, a manufacturer of a down jackets based in Shanghai-based FountainVest Capital and Anta Sports Made an agreement in 2019 The owner of Wilson tennis rackets is to buy Finland’s Amer Sports.
According to several industry observers, Canada Excavation Special Removal proposal is not surprising, because going special will give buyers more autonomy for the company to revolve around the company without extra examination of regular financial explanations.
Bain Capital added that after the selection of a buyer, it is expected to take less than two months before the agreement was signed.
Canada Gooose’s shares of New York have won over 21% this year and increased its market value to $ 1.18 billion. A year after the public opened to the public, although 2018 is still far from the summit of $ 7.7 billion, it represented great returns for the valuation Bain Notified 250 million dollars When he seized control in 2013.
As of March, Bain had approximately 60.5% of the multiple votes shares, which carried the company’s public stocks 10 times the voting power and gave 55.5% of the total voting power in the company. According to a regulatory file.
A decisive output
Bain’s planned output comes because Canada Goose is struggling to maintain growth in various key markets, and analysts question the brand positioning and marketing strategy at a time when consumers are careful about their big ticket clothing purchases.
The company’s income for the year ending in March 1.1% on fixed money basis Sales in its major markets, including the EMEA region, including Europe, Middle East, Africa and Latin America, have dropped 2.4%, 1.7%and 12.1%, respectively, to $ 1.35 billion in Canada dollars a year ago.
This represented a sharp slowing in global income growth. 23.2% increase in 2022– 10.9% in 2023 And 9.6% in 2024 on a fixed money basis.
The sale of sales in China, which is home to almost half of the company’s global stores, shows a sharp decline compared to a 47% leap in sales in the 2024 financial year, when China’s largest market was the largest market of the company.
Inside The last quarter that ended in JuneCanada Goose, a seasonal slow period for the winter solid manufacturer, has issued a net loss of 125.5 million C, expanding a loss of $ 74 million in the same period last year.
The exit also came to Bain’s 12 -year control of the Canadian excavation because it exceeded the typical private capital investment cycle of about five to 10 years and made a natural next step.
“Bain’s Canada Kaz Agreement represents a classic PE fund cycle – he wants to buy the brand, get open to the public and get out now,” he said, and added that an output is far from ideal after 12 years.
Yaling Jiang, the founder of the consumer consultancy company Apperturechina, said, “The problem of the excavation is not particularly good fashion, especially from the consumer perspective,” Canada said.
Jiang added that the company tends to settle in mid -layer brands and celebrities in marketing and tends to deviate from its basic power in winter clothes. “The brand feels rootless and unknown.”
He also drew attention to the inconsistency in Canada Goose’s messaging and actions: “When they make a life -long bank bank and then face a series of quality scandals in China … And when they call themselves luxury fashion, many consumers are waiting to buy them. [mass market] Exit, Jiang said.
Canada Goose marked that higher US tariffs can increase raw materials and compliance costs, and potentially leads to price increases in some markets that lead to price increases.
While hiding the estimation of the current financial year on the uncertain trade environment, the company said that the impact of the tariffs is in good condition, because 75% of its items were made in Canada and are currently exempted from US tariffs due to the compliance with the US-Mexico-Canada agreement.
Outer clothing manufacturer reported To pushing into sweaters, sunglasses and shoes because it aims to turn into a whole season brand with continuous sales in non -dense seasons.
