Advent International Acquires lululemon Stake for US$845 Million
|Areas||Private Equity, Tax|
Goodmans represented Advent International, one of the largest and most experienced global firms dedicated to private equity, in its acquisition of an approximate 14 per cent stake in lululemon athletica inc. from lululemon founder Dennis “Chip” Wilson for US$845 million on September 9, 2014. In connection with the transaction, Advent, lululemon and Mr. Wilson entered into a support agreement relating to certain governance matters.
Under the support agreement, lululemon expanded the board to 12 members and Advent was granted the right to nominate two directors to lululemon's board and to representation on board committees. As previous members of the lululemon board, the Advent nominees, David Mussafer and Steve Collins, have significant knowledge of lululemon's unique business and culture and Advent, with its global reach, is well positioned to assist lululemon with its international expansion to Europe and Asia. Under the support agreement, Advent and Mr. Wilson agreed to certain voting arrangements and restrictions on transfers and purchases, as well as standstill provisions in connection with lululemon's 2015 and 2016 annual general meetings.