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Lululemon Athletica has announced it has entered into an agreement with MIRROR. MIRROR is an in-home fitness company that has created an interactive workout platform featuring live and on-demand classes. This acquisition is for the purchase price of $500 million.
Calvin McDonald, Chief Executive Officer of lululemon, said in the press release, “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.”
According to the press release, this acquisition helps lululemon build its Power of Three growth plan, which drives the business through omni-guest experiences. The addition of MIRROR will, according to lululemon, help the brand’s digital sweatlife offerings and personalized in-home sweat, and mindfulness solutions to lululemon guests.
Ms. Putnam, founder and chief executive officer of MIRROR, and a former lululemon Ambassador said in the same lululemon news release, “We are thrilled to officially become a part of the lululemon family. As part of lululemon, MIRROR can further strengthen its position and accelerate its growth by leveraging lululemon’s deep relationships with its guests, ambassadors, and communities, as well as the company’s infrastructure, including its store network and ecommerce channels, to acquire new users.”
MIRROR offers weekly live classes and thousands of on-demand workouts and one-on-one personal training. The company started in 2018 and has shown growth in that time.
The collaboration between the two brands began in mid-2019 according to the press release, which was with an initial investment in the company by lululemon. The press release also detailed that the purchase price is expected to be paid from its primary sources of liquidity, which includes over “$800 million in cash, its existing $400 million revolving credit facility, and a new one-year, $300 million revolving credit facility.”
According to the lululemon press release, “Following completion of the transaction, MIRROR will operate as a standalone company within lululemon and Ms. Putnam will continue as MIRROR’s chief executive officer, reporting to Mr. McDonald. The transaction is subject to customary closing conditions and is expected to close in the second quarter of fiscal 2020.”
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