NEW YORK, United States — Yoga-pants store Lululemon Athletica Inc. agreed to purchase Mirror, a maker of in-home health apparatus, for $500 million, broadening a partnership that started remaining yr as workout more and more strikes clear of conventional gyms.
Mirror will function as a standalone corporate inside of Lululemon and retain its leader government following crowning glory of the deal, the firms mentioned Monday in a commentary. The acquire might be paid from Lululemon’s number one assets of liquidity, together with $800 million in money and $700 million in credit score amenities.
The deal furthers Lululemon’s shift to turn into a extra experience-based corporate and past its roots as a standard store. While the Vancouver-based corporate has all the time leaned into well being — with lots of its present shops providing unfastened operating golf equipment or yoga categories — remaining summer time it moved to monetise its exercise choices through opening a Chicago retailer with a fitness center.
Home-fitness merchandise reminiscent of Peloton motorcycles and Mirror’s wall-mounted instrument have received in recognition because the coronavirus pandemic has shuttered gyms. New York-based Mirror, identified for its ubiquitous subway commercials, additionally provides shoppers are living categories and on-demand workout routines, mimicking what they could have as soon as paid a private instructor on the fitness center to oversee.
Lululemon stocks rose up to 4.1 p.c in after-market buying and selling. Shares of rival home-fitness corporate Peloton Interactive Inc. fell up to 4.6 p.c sooner than paring losses.
The deal is anticipated to shut in the second one quarter of the fiscal yr. Lululemon took a small stake in Mirror remaining yr.
Lululemon Chief Executive Officer Calvin McDonald mentioned on CNBC that the purchase used to be now not motivated through boosting his corporate’s attire gross sales however through the house fitness center product’s personal attainable. He mentioned Mirror might be winning once subsequent yr and whilst it’s lately handiest to be had within the U.S., Lululemon plans to be offering Mirror the world over.
Mirror’s trademark product, which looks as if an ordinary full-length replicate when now not in use, retails for $1,495. Shoppers too can pay in $42 a month instalments.
By Richard Clough