Apparel company Lululemon Athletica has agreed to divest about 50% of its stake to Boston-based private equity firm Advent International for about $845m.
The Vancouver-based yoga-wear company said the sale represents 13.85% of Lululemon’s outstanding shares, and the deal is fully supported by its board of directors.
Upon finalisation of the deal, Wilson will own 20.1 million Lululemon shares, with Advent owning the other 20.1 million shares.
The stock purchase is expected to close within 30 to 60 days.
Lululemon founder and a director Chip Wilson said: "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," Wilson in a statement.
The deal is the culmination of Wilson’s ongoing dispute with the other Lululemon board members. Wilson stepped down from his chairman position in 2013.
Lululemon Athletica, a designer and retailer of technical athletic apparel, operates in Canada, and through its subsidiaries, also has operations across various countries including the US, Australia, New Zealand, Hong Kong and the UK.