Lululemon Athletica Inc.’s (LULU) Dennis Wilson Exploring Buyout Options With PE Firms

Charles Payne from Fox Business discussed with anchor Nicole Petallides about the recent rise in the stock price of Lululemon Athletica Inc. (NASDAQ:LULU).

Lululemon Athletica inc. (NASDAQ:LULU)

“The advisors, founder Dennis Wilson’s advisors have been talking to private equity firms, so we will see what happens, including Leonard Green & Partners, to find out if they are actually interested in purchasing,” Petallides said.

Petallides was referring to the recent news about Dennis Wilson’s advisors being in talks with private equity investors which included PE firm Leonard Green & Partners to explore the possibility of a buyout.

As reported by The Wall Street Journal (WSJ), industry experts believe that such a buyout would not be easy considering the fact that investors would demand a premium over the existing market capitalization of $6 billion.

Moreover, the plans for a buyout reflect the founder Dennis Wilson’s decision to bring in changes in the management of the Lululemon Athletica Inc. (NASDAQ:LULU). This is also evident in the fact that on June, 2014 at the company’s annual general meeting, Wilson had voted against the company’s new chairman as well as another director and expressed his unhappiness with the strategic direction that the management was giving to the company.

Wilson was also recently reported to be in talks with Goldman Sachs on ways to increase his ownership in the company, where he currently has a 28% stake.

Wilson having resigned as chief executive in 2005, remained as chairman of the company till May, 2014 and had to step down from the chairman post due to his controversial remarks on the company’s women customers i.e. he had said that some women don’t have a body that is suitable for the yoga pants that Lululemon Athletica Inc. (NASDAQ:LULU) makes and hence he said that these customers are facing faults with the pants.”

Currently, Wilson remains a director on the board of Lululemon Athletica Inc. (NASDAQ:LULU). Moreover, it had cost millions of dollars for the company to recall its yoga pants which were found to be too sheer.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!