Lululemon Athletica To Buy MIRROR For $500 Mln

(RTTNews) - Lululemon Athletica Inc. (LULU) Monday said it has agreed to buy MIRROR, a in-home fitness company, for $500 million.

Lululemon expects MIRROR to help "accelerate its vision and build upon an ecosystem that will fuel the company's Power of Three growth plan, which includes driving the business through omni guest experiences.

CEO Calvin McDonald said, "In 2019, we detailed our vision to be the experiential brand that ignites a community of people living the sweatlife through sweat, grow and connect. The acquisition of MIRROR is an exciting opportunity to build upon that vision, enhance our digital and interactive capabilities, and deepen our roots in the sweatlife. We look forward to learning from and working with Brynn Putnam and the team at MIRROR to accelerate the growth of personalized in-home fitness."

The company plans to fund the purchase price from $800 million in cash, its existing $400 million revolving credit facility, and a new one-year, $300 million revolving credit facility.

Following completion of the transaction, MIRROR will operate as a standalone company within lululemon and Putnam will continue as MIRROR's CEO, reporting to McDonald. The transaction is subject to customary closing conditions and is expected to close in the second quarter of fiscal 2020.