Lululemon averts proxy war; founder to sell half his stake

Lululemon Athletica Inc. founder Chip Wilson will sell half of his 27 percent stake in the yoga apparel maker to private equity firm Advent International for $845 million, as part of a deal in which Wilson agreed not to wage a proxy contest.

Under the agreement, Wilson and Advent are prohibited from waging a proxy contest until after the annual shareholder meeting in 2016. It also prevents hostile merger or acquisition transactions, according to Reuters.

Vancouver-based Lululemon, once a market darling, has struggled after announcing a recall of see-through yoga pants in March 2013.

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