Lululemon founder, company reach truce in $845 million deal; new investor gets 2 board seats

IndustriesAssociated Press

Lululemon Athletica founder Dennis "Chip" Wilson will sell half his stake in the maker of yoga apparel and other exercise gear as part of a truce that averts a potentially messy battle.

Under the deal announced Thursday, investment firm Advent International will pay Wilson $845 million for 20.1 million shares. That will whittle Wilson's stake in Lululemon from nearly 28 percent to just under 14 percent. Advent will get two seats on Lululemon's board.

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Wilson had lashed out at Lululemon's board in June, raising the possibility of an attempt to oust some directors.

Lululemon has been trying to bounce back from a backlash triggered last year by yoga pants that were too sheer and galled many customers. Fixing the problem cost the company millions and made investors question quality control.