Lululemon Athletica founder, Chip Wilson, will sell half his stake in the Canadian sportswear brand to private equity firm Advent International for $US845 million.
As a part of the deal, Advent managing partner, David Mussafer, and MD Steve Collins, will join the Lululemon board of directors, with Mussafer becoming co-chairman alongside standing chairman, Michael Casey.
Wilson has a checkered history with the brand, standing down as chairman in December, after sparking outrage over controversial comments he made about women’s bodies.
Wilson currently beneficially owns 40.2 million shares of Lululemon stock, representing 27.7 per cent of the company’s outstanding shares.
Once the sale agreement is complete, Advent and Wilson will each beneficially own 20.1 million shares or 13.85 per cent of the company’s outstanding shares.
“Advent is a strong partner that knows Lululemon and our culture and will be an incredibly helpful addition to the Board as we build an even stronger company,” said Wilson.
Advent previously invested in Lululemon in 2005, with both Mussafer and Collins serving as directors of the board at that time.
“I am delighted with the addition of David and Steven as new directors, both of whom are very familiar with our company and bring significant expertise.
“Lululemon is well positioned to successfully execute on its strategic goals, and I look forward to working alongside the entire board and management team as we focus on leveraging our core values of product and innovation to enhance value for all shareholders,” said Wilson.
Wilson and Advent have agreed to standstill provisions for the Company’s 2015 and 2016 Annual Stockholder Meetings.
