• No purchase price disclosed
• Canada Goose CEO to retain more than 10 pct stake
• Company has sought equity since April
The two companies did not disclose the purchase price or the size of the majority stake bought by Bain, but said in a statement that Canada Goose Chief Executive Dani Reiss will remain in his position and maintain a “significant” stake in the company.
Reiss’s grandfather founded the company in 1957, and his family were the main shareholders prior to the Bain deal.
In an interview, Reiss said his stake will be more than 10 percent.
Canada Goose has built a name on its pricey fur-lined parkas and other winter items, which the company boasts are manufactured in Canada, in spite of higher manufacturing costs than in other locations.
In April, the company hired investment bank Canaccord Genuity to find a partner to bring additional equity into the company, with Reiss saying at the time that a minority partner was preferred.
Bain’s majority offer won out among others due in part to the firm’s ability to help Canada Goose grow globally, particularly in Asia, Reiss said.
“We felt they were the strongest partner,” he said.
He said Bain will have board representation, but that Reiss and the Canada Goose management will continue to run the company and continue to manufacture within Canada.
“Our partners in Bain are 100 percent behind us in that manufacturing philosophy,” he said.
Canada Goose has annual sales of roughly C$200 million ($188.32 million), an industry source told Reuters earlier this year.
Cannaccord Genuity served as financial advisor on the deal.
The market for specialized outdoor clothing is expanding rapidly, with both sportswear companies and financial investors keen to gain a share in the business.
Cameron French is a reporter for Reuters News in Toronto