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Private Equity Karma Might Not Be Right For a Lululemon Sale


After Lululemon Athletica founder Chip Wilson was said to have hired Goldman Sachs to advise him, rumors flew that the yoga apparel maker might be up for sale. But even if he is planning to take back control of his company, Wilson will need a backer. And, considering that the retailer trades at more than 12 times projected Ebitda of $420 million, private equity may consider it too expensive, especially in the cyclical world of apparel makers. The board is also said to be hiring advisers, however, so dealmakers may still have a go at putting the company up for sale to private equity or a strategic acquirer.