Bain Capital’s Canada Goose shoots for $320 mln from public sale

Canada Goose, a designer and maker of luxury outdoor apparel, priced its recently filed initial public offering in Canada and the United States.

The company plans to raise as much as $320 million from a sale of 20 million subordinate voting shares at $14 to $16 per unit, according to the updated prospectus.

That would give Canada Goose a market value of more than $1.7 billion (US$1.3 billion), Renaissance Capital estimates.

Founded in 1957 in a small Toronto warehouse, Canada Goose has grown into a global outerwear brand. It is currently owned by U.S. private equity firm Bain Capital, which bought it in 2013 for an undisclosed amount.

The IPO will include a secondary sale by Bain. Upon its completion, the Boston investor will remain Canada Goose’s controlling shareholder, with an interest of close to 70 percent, according to the updated prospectus.

Canada Goose said it would use its share of the proceeds to repay a portion of outstanding debt.

Canada Goose will list on the New York Stock Exchange and the Toronto Stock Exchange under the symbol GOOS. The shares are being offered domestically by CIBC, Credit Suisse, Goldman Sachs, RBC, Merrill Lynch, Morgan Stanley, Barclays Capital, BMO, TD, Wells Fargo and Canaccord Genuity.

Earlier this week, another Canadian company, STEP Energy Services, an oilfield service provider, priced its IPO. STEP is backed by Canadian private equity firm ARC Financial Corp.

In all, three Canadian PE-backed companies have announced plans to go public this year. The third, frac-sand producer Source Energy Services, a portfolio investment of TriWest Capital Partners, filed last month.

A fourth, health-food restaurant chain Freshii, backed by Klass Capital, wrapped up its IPO in February. The company ultimately raised about $144 million, according to adviser DLA Piper Canada.

This suggests 2017’s IPO market in Canada will prove much more felicitous for PE-backed companies than 2016’s. Last year, the $400 million offering by women’s fashion retailer Aritzia, a portfolio investment of Berkshire Partners, was one of the few highlights of a “dismal” overall performance, according to PwC.

Photo courtesy of Reuters/Fred Thornhill