The windows of a Lululemon Athletica store, normally furnished with mannequins showing off the outlet's popular yoga pants and athletic wear, are boarded up with black plywood as it remains closed due to the COVID-19 pandemic, in Ottawa, on April 10, 2020. THE CANADIAN PRESS/Justin Tang
June 29, 2020 - 1:31 PM
TORONTO - Lululemon Athletica Inc. has entered into an agreement to acquire in-home fitness company Mirror.
The deal is valued at $500 million and will see the Vancouver-based athleticwear brand take over New York-based Mirror, which runs an interactive workout platform that features live and on-demand fitness classes.
Lululemon says the purchase will be covered by the company’s primary sources of liquidity, which includes more than $800 million in cash, its existing $400 million revolving credit facility, and a new one-year, $300 million revolving credit facility.
Lululemon believes Mirror will help position the company to drive the business through virtual and in-person experiences and bolster the company’s digital offerings.
Following completion of the transaction, Mirror will operate as a standalone company within Lululemon and Mirror's founder Brynn Putnam will continue as its CEO.
The transaction is subject to conditions, but is expected to close in the second quarter of fiscal 2020.
This report by The Canadian Press was first published June 29, 2020.
News from © The Canadian Press, 2020