The Financial Post reports in its Tuesday, Sept. 2, edition that Canada Goose Holdings shares rose 12 per cent last week after reports that its majority shareholder is considering a sale. The Post's Jane Switzer writes that CNBC cited sources suggesting Bain Capital is in early talks for a potential deal to take the company private. Bain acquired a controlling interest in Canada Goose in 2013. As of March 30, Bain holds about 60 per cent of outstanding multiple voting shares, or 55.5 per cent of combined voting power, according to filings with the U.S. Securities and Exchange Commission. Canada Goose's chief executive officer, Dani Reiss, owns approximately 39.5 per cent of outstanding multiple voting shares, or 36.2 per cent of the combined voting power. Canada Goose's stock is up 24 per cent this year on the TSX and 30 per cent on the NYSE.
The possibility of Canada Goose going private is not surprising given the quality of the brand and "big margin expansion opportunity," according to a TD Cowen report. Analysts noted that the company is in the "early innings" of fashion and product changes and said its stores could be running 20 to 30 per cent below prior productivity peaks.
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