lululemon athletica has entered into a definitive agreement to acquire MIRROR, an in-home fitness company offering an interactive workout platform with both live and on-demand classes, for $500 million. The deal will help bolster lululemon’s Power of Three growth plan, which includes driving business through efforts such as omni guest experiences.
MIRROR offers weekly live classes and thousands of on-demand workouts as well as one-on-one personal training. The company’s relationship with lululemon started in mid-2019 with an initial investment in MIRROR by lululemon. The investment included a content partnership that brought sweat and meditation classes to the MIRROR platform by lululemon’s Global Ambassadors, and the acquisition will further expand the collaboration between the brands.
“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,” said Calvin McDonald, CEO of lululemon 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. 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.”
Following completion of the transaction, MIRROR will operate as a standalone company within lululemon, with Putnam continuing as CEO and reporting to McDonald. The transaction is subject to customary closing conditions and is expected to close in the second quarter of fiscal 2020.
The purchase price is expected to be paid from lululemon’s primary sources of liquidity, which include over $800 million in cash, its existing $400 million revolving credit facility, and a new one-year, $300 million revolving credit facility.