Skechers USA Inc. is set to become a privately held company following a $9.4 billion acquisition agreement with private equity firm 3G Capital, the companies announced Monday.
The deal will see 3G Capital purchase the footwear company for $63 per share in cash, representing a 30% premium over Skechers’ most recent public market valuation.
The news sent Skechers shares soaring by 25% in early Monday trading, underscoring investor enthusiasm for the deal. In addition to the all-cash offer, existing shareholders are being given a second option: to accept $57 per share in cash and receive a minority stake in the newly privatized parent company.
Once the acquisition is finalized, Skechers will cease trading as a public entity. However, founder and CEO Robert Greenberg, along with other top executives including his son Michael Greenberg, will remain in their leadership roles. The Greenberg family is also expected to opt for the partial-equity offer, maintaining a stake in the company they have led for decades.
Founded in 1992, Skechers has grown into the third-largest footwear brand globally by sales. Known for its casual and hands-free slip-in designs, the company has recently expanded into performance footwear and signed high-profile athletes such as Joel Embiid and Harry Kane as brand ambassadors. Despite these moves, Skechers has often been undervalued on Wall Street compared to newer athletic footwear brands, prompting ongoing tension between the company’s operational success and market perception.
The acquisition comes at a time when Skechers had seen its stock decline from a high of around $75 in January to under $50, following the withdrawal of its annual financial guidance and exposure to trade-related tariffs. Roughly 40% of its products are sourced from China, though executives have recently stated that reliance is set to decrease.
3G Capital, a US-Brazilian investment firm with a history of acquiring major consumer brands—most notably through its involvement in the Kraft Heinz merger—is re-entering the M&A space after a period of limited activity. The firm has a track record of investing in family-run businesses with experienced leadership teams, including its 2022 acquisition of window-covering company Hunter Douglas.
Skechers CEO Robert Greenberg commented on the deal, saying:
“With a proven track record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital… This partnership will support our talented team as they execute their expertise to meet the needs of our consumers while enabling the company’s long-term growth.”
The transaction remains subject to regulatory approvals and is expected to close later this year.
CNBC, the Wall Street Journal, and the Financial Times contributed to this report.
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