Under Armour chair offloads $100-million stake
Under Armour, Inc. announced on Wednesday its executive chair and brand chief Kevin Plank has sold $100-million worth of shares to BDT Capital Partners, an affiliate of merchant bank BDT & MSD Partners.
According to the sportswear giant, BDT Capital Partners has purchased approximately 16 million class C shares of Under Armour stock, which have a current value of approximately $100 million. Before this transaction, BDT Capital Partners held an undisclosed number of Under Armour shares.
"I have maximum confidence in Under Armour, Stephanie Linnartz as CEO, and our strategy – especially our ability to drive future success and performance for shareholders," said Plank. "This transaction allows me to close out a previous personal financing commitment related to some of my earlier initiatives investing in the City of Baltimore while bringing in a long-term founder-supportive firm in BDT & MSD, which believes in Under Armour."
Following the sale, Plank remains Under Armour's largest shareholder, retaining approximately 51 million combined shares across the company's three classes (A, B, and C), representing about 12% of the company's stock and 65% of the voting control. The executive confirmed that there are no plans for additional sales of his shares.
"We have strong conviction in Kevin's vision for Under Armour and the refreshed, focused strategy laid out by Stephanie to position the business for attractive long-term growth," said Byron Trott, chairman and co-Chief Executive Officer of BDT & MSD Partners.
In its most recent trading update in May, Under Armour said it expects fiscal 2024 net sales to be flat to slightly up, compared with analysts expectations of 3.7% growth.
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