Lululemon Founder Wilson To Sell Half His Stake To Advent

(RTTNews) - lululemon athletica inc. (LULU) said Thursday that founder and board member Dennis Wilson has agreed to sell about 50% of his stake in the yogawear retailer, or about 13.85% of the company's outstanding shares, to Advent International for about $845 million.

The deal has received the full support of the lululemon Board of Directors.

Wilson currently beneficially owns 40.2 million shares of lululemon common stock, representing about 27.7% of the company's outstanding shares. Once the stock sale agreement is completed, Advent and Wilson will each beneficially own about 20.1 million shares of lululemon common stock, or about 13.85% of the company's outstanding shares.

The stock purchase agreement is expected to close in 30-60 days.

lululemon, Wilson and Advent have also entered into a support agreement under which Advent Managing Partner David Mussafer and Managing Director Steven Collins will be appointed to lululemon's Board of Directors, effective as of the closing of the stock sale deal, expanding the Board from 10 to 12 members.

Mussafer also will be appointed Co-Chairman of the lululemon Board, serving alongside current Chairman Michael Casey. Mussafer previously served as a lululemon director from 2005 to 2010; Collins served as a Director from 2005 to 2009.

Under the support agreement, the parties will engage an independent expert to evaluate and make recommendations regarding the lululemon Board's committees, policies and procedures over the course of 90 days following the completion of Advent's stock purchase.

With the agreement, Wilson, lululemon and Advent have affirmed their commitment to ensuring best practice corporate governance. In addition, Wilson and Advent have agreed to certain standstill provisions for the company's 2015 and 2016 Annual Stockholder Meetings.