Under Armour, Inc. (NYSE:, UAA) is gaining 2.5% in pre-open trading after the company announced late Wednesday that funds managed by BDT Capital Partners purchased approximately 16 million class C shares of Under Armour stock from Executive Chair and Brand Chief Kevin Plank. BDT Capital Partners is an affiliate of BDT & MSD Partners, a merchant bank built to serve the distinct needs of business owners and strategic, long-term investors. The shares have a current value of approximately $100 million. Before this transaction, BDT Capital Partners had an existing position in the class C shares of Under Armour.
"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 Mr. 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."
"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.
Following this sale, Mr. 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. Mr. Plank confirmed that there are no plans for additional sales of his shares.
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