Chip Wilson selling half his stake in Lululemon for $845M

Lululemon | BCBusiness

A truce of sorts has emerged in Lululemon’s board battle, as Chip Wilson agrees to sell half of his stake under the board’s blessing

Chip Wilson is selling half his stake in Lululemon to an American private equity firm for $845 million, according to a release posted Thursday by the company. With the (unexpected) full backing of Lululemon’s board, Wilson will unload 13.85 per cent of the company’s shares to Advent International, a previous investor in Lululemon from 2005 to 2009.

Wilson worked closely with half of the board, including chairman Michael Casey, to wrap up the transaction with Advent International in a surprising close to the company’s recent internal drama. 

In June, following a tense annual general meeting where Wilson squared off with his board, rumours in the financial press circled that Wilson had turned to Goldman Sachs in his hopes to shake up the retailer’s board of directors, possibly clearing the way for a proxy fight or buyout. At the time, Casey was quick to quash any rumours: “I can clearly state that we haven’t received any overtures from other companies.”

The company’s stock surged 7 per cent in after-hours trading following the announcement.