Frasers Group has acquired an 8.8 per cent stake in Under Armour, adding the US sportswear business to its growing portfolio of investments in international sporting brands.
A US Securities and Exchange Commission filing shows that Frasers owns approximately 16.6 million shares. Those shares were worth around $80.1 million at Tuesday’s closing price.
The investment brings together two businesses with an existing trading relationship: Under Armour products are already stocked by Sports Direct in the UK and sold through its website. It also follows Frasers’ purchase of almost 6 per cent of Puma, extending the group’s financial interests in the brands supplying the sports retail market.
Under Armour is in the midst of efforts to rebuild its performance. The Baltimore-based company has narrowed its product offering and curtailed discounting to reinforce its brand positioning, while facing pressure from subdued consumer spending.
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