Under Armour founder Kevin Plank sold some of his shares in the company worth $100 million to a private equity firm, the company announced Tuesday, but Plank remains the athletic apparel brand’s largest shareholder.
Funds managed by BDT Capital Partners purchased about 16 million class C shares of Under Armour stock from Plank, the Baltimore-based company’s executive chair and brand chief. BDT Capital, which held Class C shares before the sale, is an affiliate of BDT & MSD Partners, a merchant bank that serves business owners and long-term investors.
Plank said in a news release that the transaction allows him to close out a previous personal financing commitment related to earlier initiatives investing in Baltimore city while bringing in a firm that believes in Under Armour. Plank is an owner in Baltimore Peninsula, a new community being developed on 235 acres of South Baltimore riverfront, through his Sagamore Ventures investment firm.
“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,” Plank said in the release.
Linnartz became Under Armour CEO on Feb. 27.
Plank retains about 51 million combined Class A, B and C shares, which represents about 12% of Under Armour’s stock and 65% of its voting control. Plank said he has no plans to sell additional 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, BDT & MSD Partners’ chairman and co-CEO, in the release.
Under Armour shares were up 20 cents in Thursday afternoon trading at $7.41 each.