lululemon athletica, an athletics and yoga apparel specialty retailer based out of Vancouver, Canada, will get a new minority partner and a new CEO in a deal that sees Advent International and Highland Capital Partners invest approximately $195 million in growth equity financing. Founder Chip Wilson, who will retain a majority position in lululemon, will cash out a portion of his stake in the transaction. The Globe and Mail reported that the two firms acquired 48% of the company, while employees pick up a 10% stake.
lulelemon reportedly has annual revenues of CN$60 million.
lululemon, which was founded in 1998, sells its own branded merchandise through 33 company-owned specialty retail locations which are primarily in Canada. They have a small presence in the U.S., Japan, and Australia, a situation they see changing with the cash infusion. lululemon plans to expand on its four existing U.S. stores and open 15 new U.S. locations annually over the next five years. The company said new store openings and strong same-store sales have significantly contributed to the companys ability to double revenue and earnings annually for the past four years. They reportedly see as many as 200 stores worldwide.
As part of the deal, Bob Meers, the former Reebok International CEO and current Advent Operating Partner will be named the new CEO of lululemon athletica. Wilson will stay on as chairman and chief product designer.
>>> The success of the deal rests on Meers ability to bring a global vision to the retailer. At Reebok, he worked closely with J.S. Gill, the Asian distributor and retailer. Wouldnt be surprised if