Lululemon to Buy Home-Fitness Company Mirror for $500 Million

Henrietta Strickland
June 30, 2020

Once a more traditional retailer, Lululemon has been pushing increasingly into fitness as experiences sell. And the two companies have a relationship dating back to late past year, when Lululemon become an investor in Mirror. Mirror has seen rapid growth and strong engagement since it launched in 2018 as demand for in-home fitness offerings continues to increase significantly.

Mirror offers customers live classes and on-demand workouts, mimicking what they might have once paid a personal trainer at the gym to oversee.

The deal builds on a partnership between the two companies that began in mid-2019 when Lululemon made an initial investment in Mirror.

Although there's stiff competition in the category of connected fitness slabs, including Tonal and Tempo, Mirror continues to be the biggest name of the bunch.

The Vancouver-based company is entering into a definitive agreement to acquire Mirror for $500 million, Lululemon said in a statement to investors on Monday.

Putnam, founder and CEO of Mirror, said he's "thrilled to officially become a part of the Lululemon family".

Putnam added that he hopes to leverage Lululemon's relationship with guests and "ambassadors" to acquire users. The purchase will be paid from Lululemon's primary sources of liquidity, including US$800 million in cash and US$700 million in credit facilities. The transaction is subject to customary closing conditions and is expected to close in the second quarter of fiscal 2020. Cooley LLP served as legal counsel to Mirror.

Other reports by Click Lancashire

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