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(Photo: Twitter @lululemon)

Lululemon to buy home-fitness company Mirror for US$500M

(Photo: Twitter @lululemon)

Yoga-pants retailer Lululemon Athletica Inc agreed to buy Mirror, a maker of in-home fitness equipment, for US$500 million, broadening a partnership that began last year as exercise increasingly moves away from traditional gyms.

Mirror will operate as a standalone company within Lululemon and retain its chief executive following completion of the deal, the companies said Monday in a statement.

The purchase will be paid from Lululemon’s primary sources of liquidity, including US$800 million in cash and US$700 million in credit facilities.

A Mirror owner completes a routine while using the device. (Photo: Business Insider)

Once a more traditional retailer, Lululemon has been pushing increasingly into fitness as experiences sell. Although Lululemon has always leaned into health — with many of its existing stores offering free running clubs or yoga classes — last summer it moved to monetise its workout offerings by opening a Chicago store with a gym.

Mirror offers customers live classes and on-demand workouts, mimicking what they might have once paid a personal trainer at the gym to oversee. Lululemon took a minority stake in Mirror last year.

Lululemon shares rose as much as 4.1 per cent in after-market trading. Shares of rival home-fitness company Peloton Interactive Inc fell as much as 4.6 per cent.

The deal is expected to close in the second quarter of the fiscal year.

— Bloomberg