UPDATE 1-Bain Capital buys majority stake in parka maker Canada Goose
TORONTO Dec 10 (Reuters) - Bain Capital, the U.S. private equity firm, has bought a majority stake in Canada Goose Inc, a family-owned company which had been seeking an investor to help it meet demand for its high-end cold-weather gear.
The two companies did not disclose the purchase price or the size of the majority stake bought by Bain, but said in a statement on Tuesday 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 company's shareholders prior to the Bain deal. As part of the deal, the other family members will sell their shares, leaving Reiss as the sole non-Bain shareholder.
In an interview, he would not specify the size of his remaining holding, but said it would be above 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.
Canaccord 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.
- First Ebola case diagnosed in the United States: CDC |
- Advanced iOS virus targeting Hong Kong protestors -security firm
- U.S. health experts in Dallas review potential Ebola exposure |
- Defiant Hong Kong protesters demand leader steps down |
- Turkey vows to fight Islamic State, coalition strikes near border