Lululemon set to acquire home fitness startup Mirror for $500M

Andrew Cummings
July 2, 2020

Why it matters: This could be the first in a series of connected fitness acquisitions by both retail and media companies.

The acquisition fits in with management's "Power Of Three" strategic plan. The five-year roadmap calls for the company to: 1) double men's revenue, 2) double digital revenue, and 3) quadruple worldwide revenue.

Mirror is an innovative enterprise that offers live and on-demand personal training sessions as well as fitness classes, broadcast on a novel wall-mounted device, a big mirror that also doubles as a video screen, running consumers approximately $1,495.

The purchase price 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.


Brynn Putnam will continue as Mirror's CEO, reporting to McDonald.

The two companies struck a relationship in mid-2019 when Lululemon invested in Mirror and collaborated on a content partnership.

"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", McDonald added. In the midst of the coronavirus pandemic, going to the gym hasn't been an option for many and Lululemon is betting on the transition to at home workouts.

Mirror began operations in September 2018 and generated sales of $100 million in 2020.


The companies have been working together for the past year, with Mirror featuring Lululemon ambassadors on the platform, giving customers a more recognisable face to workout with - but the latest move will see the sportswear brand adding Mirror to its own books.

Lululemon brought meditation classes to the Mirror platform after investing in the startup a year ago. The at-home workout company managed to raise USD72 Million from investors.

"We are very confident with the momentum we are having in the business, the demand we have behind the product, the growth that we are seeing", McDonald said.


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