Lululemon has announced that it has acquired Mirror, an in-home fitness company, for a purchase price of $500 million.
The company offers a mirror that turns into an interactive home gym. When turned off, it acts as a full-length basic mirror. When turned on, users are able to pick from weekly live classes, on-demand workouts, and one-on-one personal training, according to a release from Lululemon.
The acquisition is said to enhance Lululemon’s digital offerings to new and existing customers. The two companies began a relationship in mid-2019 when Lululemon presented Mirror with an initial investment, which included a content partnership and classes offered by Lululemon’s Global Ambassador Program.
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“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,” says Lululemon Chief Executive Officer Calvin McDonald.
“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.”
The company says that it will pay for the transaction through its “primary source of liquidity,” which includes more than $800 million in cash, a $400 million revolving credit facility, and a new, one-year $300 million revolving credit facility.
Mirror will continue to operate as a standalone company and the transaction is expected to close during the second fiscal quarter of 2020.