Skechers Goes Private in $9.4B Deal with 3G Capital
Skechers acquired by 3G Capital for $9.4B, going private. More about the deal, its impact, and what it means for the footwear giant.
Skechers, a leading name in casual and athletic footwear, is stepping out of the public eye. The Southern California-based company, founded in Manhattan Beach over 30 years ago, has agreed to be acquired by investment firm 3G Capital for $9.4 billion. This deal marks the largest buyout in the footwear industry history and will transition Skechers into a privately held company, ending its run on the New York Stock Exchange.
Details of the Acquisition
The agreement, announced on May 5, 2025, offers Skechers shareholders $63 per share in cash, a 30% premium over the company recent stock price. The deal, unanimously approved by Skechers board, is expected to close in the third quarter of 2025. Financing includes cash from 3G Capital and debt commitments from JPMorgan Chase Bank. Shareholders also have an option to receive a mix of cash and equity in the new private entity, providing flexibility for long-term investors.
Leadership and Headquarters Unchanged
Skechers will continue to be led by its current management team, with Chairman and CEO Robert Greenberg at the helm, alongside President Michael Greenberg and COO David Weinberg. The company headquarters will remain in Manhattan Beach, preserving its Southern California roots. This continuity signals confidence in Skechers established strategy and leadership as it navigates this new chapter.
Why Go Private?
The decision to go private comes amid challenging market conditions, particularly due to steep U.S. tariffs on imported goods. Skechers, which relies heavily on overseas manufacturing, especially in China and Vietnam, has faced uncertainty from trade policies, including a 145% tariff on Chinese imports. Going private allows Skechers to strategize without the pressure of public market scrutiny, giving it room to address tariff impacts and consumer spending shifts.
A Strategic Move for 3G Capital
3G Capital, known for its investments in consumer brands like Kraft Heinz and Burger King, sees Skechers as a growth opportunity. The firm, led by Brazilian billionaire Jorge Paulo Lemann, has a history of partnering with founder-led businesses. Analysts suggest this acquisition aligns with 3G Capital focus on long-term value creation, leveraging Skechers global brand and $9 billion in annual sales.
Impact on the Footwear Industry
Skechers, the third-largest footwear brand globally behind Nike and Adidas, reported $8.97 billion in revenue in 2024. Despite a slight dip in first-quarter earnings this year, the company saw a 7.1% sales increase. The acquisition could reshape competition in the footwear sector, as Skechers gains flexibility to innovate in lifestyle and performance footwear without quarterly earnings pressure.
Following the announcement, Skechers stock surged over 25%, reaching $61.86. Investors appear optimistic about the premium offered and the company growth potential under private ownership. However, some analysts note the deal timing, as Skechers withdrew its 2025 guidance in April due to trade policy concerns, may reflect a strategic retreat from public market volatility.
As Skechers prepares to go private, the company is poised to strengthen its global presence, with products sold in 180 countries through 5,300 retail stores and online platforms. The partnership with 3G Capital could fuel expansion and innovation, helping Skechers maintain its reputation for comfort and style. For consumers, the transition is unlikely to alter the brand availability or quality, but it may lead to bold new strategies in a competitive market.
