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Bloomberg
Canada Goose Inc., the retailer of high-end winter parka coats that can sell for more than $1,000 apiece, has chosen bankers to lead its planned initial public offering, according to people familiar with the matter.
Credit Suisse Group AG, Canadian Imperial Bank of Commerce and Goldman Sachs Group Inc. will lead the Toronto-based retailer’s offering, the people said, asking not to be identified because the details are private. The sale could happen as soon as 2017 and Canada Goose, which is backed by Bain Capital, plans to seek a valuation of about $2 billion, they said.
Representatives for Canada Goose, CIBC, Credit Suisse and Goldman Sachs declined to comment. A representative for Bain didn’t respond to requests for comment.
Canada Goose was founded in a small warehouse in Toronto in 1957 as Metro Sportswear Ltd., specializing in woolen vests, raincoats and snowmobile suits. In recent years it has shifted its focus to luxury consumers, targeting shoppers who drive Land Rovers rather than dogsleds. The company employs more than 1,000 people worldwide, according to its website. Bain Capital acquired a majority position in Canada Goose in 2013 for an undisclosed sum. Dani Reiss, the company’s chief executive officer and grandson of its founder, Sam Tick, retained a minority position in the company at the time.
Brand Cachet
“One could argue that they’re at their crest in terms of their brand recognition and their brand cachet,†Bruce Winder, partner and co-founder of Toronto-based consultancy Retail Advisors Network, said in an interview.
“It’s just incredible what they can get for their jackets, and there’s probably some good expansion opportunities outside of North America.†he said. Canada Goose’s most expensive coat — which has a coyote-fur lined hood and claims to protect the wearer in temperatures below minus 25 degrees Fahrenheit (minus 32 degrees Celsius) — retails for $1,500.
In May, Canada Goose announced plans to open its first flagship stores in Toronto and New York. The combined 4,000 square feet (372 square meters) of retail space will be the company’s first standalone stores, adding to its existing online operations and concessions in 50 countries.
Fellow Canadian retailer Aritzia Inc. raised C$400 million ($301 million) selling shares on the Toronto Stock Exchange in October, in the largest Canadian IPO of the year amid a dearth of listings.
Shares closed Tuesday at C$17.61, about 10 percent above their IPO price.