Executive Summary

Overview

Scope of Proposal

Strategic Assessment

• Lululemon is a multinational athletic apparel company specializing in high-quality yoga, running, and workout clothing for both men and women

• Lululemon is a leader in the athleisure market with a strong focus on community, sustainability, and innovative product design

• Lululemon's continuous growth and expansion into new product categories, as well as its acquisition of fitness technology companies, positions it well to acquire businesses in the athletic and wellness space

• This proposal will cover the outdoor wear and fitness equipment and accessory segment

• Lululemon's position as a market leader in the athleisure and performance apparel industry, combined with a growing focus on fitness and outdoor activity, puts it in an excellent position to acquire the company Columbia Sportswear

• Leveraging our expertise in the industry, we present a strategic investment opportunity for Lululemon to expand its presence in market by acquiring Columbia Sportswear and its subsidiaries.

• Lululemon's position as the market leader in performance apparel enables the acquisition of Columbia Sportswear to expand its product portfolio, enhance, and optimize its customer experience

• Lululemon's current focus and related products can be complemented by Columbia’s shared values and integration of diverse product range

• Acquiring Columbia will allow Lululemon to provide a seamless integration of experience and enhancing brand loyalty

Proposal

Given Columbia’s market placement, the FIR recommends the $6.3 B acquisition of Columbia Sportswear an offer price of $121.16 per share.