The sportswear maker said in a statement that the acquisition “will bolster the company’s digital sweatlife offerings and bring immersive and personalized in-home sweat, and mindfulness solutions to new and existing lululemon guests.”
Mirror offers weekly live classes and on-demand workouts as well as one-on-one personal training. With millions of Americans stuck at home because of the Covid-19 pandemic, home exercise and training offerings have been seeing growing demand.
Lululemon CEO Calvin McDonald said in a statement "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."
Lululemon said the transaction “is expected to be paid from the company’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.”
Mirror will operate as a standalone company within Lululemon. The deal is expected to close in the second quarter of fiscal 2020.
Shares of Lululemon rose $11.15, or 3.8%, to $305.50 in after-hours trading. The stock gained 1.7% in the regular session.
In the broader markets, the Dow rose 580 points, or 2.3%, to 25,596 during the regular session. The S&P 500 gained 1.5% and the Nasdaq composite rose 1.2%. Investors shrugged off the latest moves to lockdown states that had been reopening amid a resurgence of coronavirus infections, instead focusing on better-than-expected pending home sales, which rose 44% in May.