Skechers to Go Private in $9.42 Billion Deal with 3G Capital
Skechers, the popular footwear brand known for its comfort-first sneakers, is set to be acquired by investment firm 3G Capital in a deal valued at $9.42 billion. This marks the largest buyout in the footwear industry to date and will see Skechers exit the public markets after 26 years. 3G Capital has offered $63 per Skechers share in cash, representing a 28% premium to the stock’s closing price on the preceding Friday.
The announcement triggered a significant surge in Skechers’ stock price, with shares jumping 25% to $61.86. This partially offset the nearly 30% decline the company had experienced earlier in the year, following the withdrawal of its annual results forecast in April. The withdrawal was attributed to concerns about the potential impact of President Donald Trump’s 145% import tariff on Chinese goods. China is a major source of imports for Skechers’ U.S. business.
Analysts suggest that the challenging macroeconomic environment, characterized by tariffs, weakening consumer sentiment, and strained China-U.S. relations, may have expedited the deal negotiations. Going private would allow Skechers to navigate these uncertainties without the constant scrutiny of Wall Street.
Skechers, along with other footwear giants like Nike and Adidas America, had previously urged the Trump administration to exempt shoes from reciprocal tariffs. These companies argued that such tariffs would increase costs for American businesses and lead to higher prices for consumers, potentially dampening spending.
Founded in 1992, Skechers initially focused on men’s street style with the launch of its Chrome Dome shoe. However, the brand evolved to become synonymous with comfortable and affordable sneakers. Despite facing competition from established players like Nike and emerging brands like Hoka, Skechers has maintained its position through aggressive global expansion and a focus on value. The company’s shoes are typically priced between $75 and $150 on its website, and it operates approximately 5,000 retail stores in over 120 countries.
Strategic marketing partnerships with celebrities like Britney Spears and Kim Kardashian have also played a crucial role in enhancing the brand’s appeal and maintaining its relevance in the market.
The acquisition of Skechers by 3G Capital came as a surprise to some, given the company’s reputation as a "family business." The Greenberg family, particularly CEO and founder Robert Greenberg, has been deeply involved in the company’s operations since its inception. Sources familiar with the deal indicated that Skechers was not actively seeking a buyer and that the transaction was the result of a long-standing relationship between 3G Capital and the Greenberg family.
Under the terms of the agreement, Robert Greenberg, aged 85, will continue to lead the company as CEO. President Michael Greenberg and operating chief David Weinberg will also retain their positions, ensuring continuity in leadership and operations.
3G Capital, led by Brazilian billionaire financier Jorge Paulo Lemann, is renowned for its investments in the food and beverage sector, most notably through companies like Kraft Heinz. The firm’s strategy typically involves boosting margins through aggressive cost-cutting and efficiency improvements. Analysts at TD Cowen suggest that this approach could eventually lead to Skechers returning to the public markets in the future, after 3G Capital has implemented its operational enhancements.
The Skechers deal is expected to be finalized in the third quarter of 2025, subject to customary closing conditions. The acquisition will be financed through a combination of cash provided by 3G Capital and debt financing committed by JPMorgan Chase Bank.
This acquisition of Skechers by 3G Capital marks a significant shift in the footwear landscape. It underscores the increasing trend of private equity firms acquiring established brands to drive growth and profitability through operational improvements and strategic investments. The deal also reflects the challenges faced by companies operating in a volatile global trade environment, where tariffs and geopolitical tensions can significantly impact business performance. By going private, Skechers aims to gain greater flexibility to navigate these challenges and pursue its long-term growth objectives without the pressures of public market expectations. The continued leadership of the Greenberg family suggests a commitment to maintaining the brand’s core values and preserving its unique identity in the market. The deal is a major move for both companies.
