- Robyn Turk |
Home fitness has become increasingly important to consumers in the U.S. after three months of stay-at-home mandates and closures of fitness studios. And Lululemon has decided to grow its business to cater to this trend.
The athleticwear brand has acquired Mirror, an innovator in the home fitness sphere, for a purchase price of 500 million dollars.
The company expects the purchase price of Mirror to come from its primary sources of liquidity, which include over 800 million dollars in cash, its existing 400-million-dollar revolving credit facility, and a new one-year, 300-million-dollar revolving credit facility.
Mirror's platform offers live and on-demand classes, as well as one-on-one personal training, all remotely. Lululemon believes the versatile platform will fuel its Power of Three growth plan, touching on the strategy to drive business through omni guest experiences.
“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," Lululemon's chief executive officer, Calvin McDonald, said in a statement. "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.”
Mirror will operate as a standalone company within Lululemon, with its founder Brynn Putnam continuing to serve as its chief executive officer, reporting to McDonald. The transaction is expected to close in the second quarter of fiscal 2020.
Photo: Lululemon Facebook