Mirror Review
May 6th, 2025
The Landmark Skechers Acquisition Deal: After a 26-year run on the public market, footwear giant Skechers has agreed to be acquired by private equity firm 3G Capital.
This Skechers acquisition is valued at a hefty $9.42 billion, making it the biggest buyout in the sneaker industry to date.
Here are the key details of the significant Skechers acquisition by 3G Capital:
- Buyer: Private equity firm 3G Capital.
- Price: $63 per share in cash.
- Premium: This price represents a significant premium (around 28-30%) over Skechers’ recent stock value.
- Market Reaction: News of the deal sent Skechers shares soaring by about 25%.
- Leadership: Founder Robert Greenberg will continue as CEO, along with President Michael Greenberg and COO David Weinberg.
Skechers CEO Robert Greenberg shared his thoughts on the deal, saying, “With a proven track record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital”. He added, “We believe this partnership will support our talented team…while enabling the Company’s long-term growth”.
Why is Skechers Going Private Now?
So, why this move for Skechers to be acquired, and why now? It seems like a mix of factors.
A big piece of the puzzle looks like the current trade environment, especially the tariffs on goods coming from China. Like many shoe brands, Skechers relies a lot on manufacturing overseas, and China is a key location. These tariffs bring uncertainty and could mean higher costs. Skechers even pulled back its financial forecast for the year recently, citing this “macroeconomic uncertainty.”
While sources suggest the trade environment wasn’t the sole trigger and that 3G Capital to acquire Skechers had been a long-term interest, the volatile market conditions likely played a role.
Going private allows Skechers to sort these challenges away from the constant scrutiny of the public markets. It gives the company breathing room to plan for the long term without worrying about short-term stock fluctuations.
What’s Next for Skechers Post-Acquisition?
This is definitely a major turning point for Skechers, currently the world’s third-biggest footwear player. Being owned by 3G Capital means its stock won’t be publicly traded anymore.
However, stability seems to be a priority. The founding Greenberg family is still heavily involved, with Robert Greenberg continuing to lead the ship. This signals that the company’s core direction likely won’t change drastically.
The 3G Capital Skechers acquisition brings a partner known for investing in major consumer brands, and often focuses on efficiency and margin enhancement.
Some industry watchers are already wondering if this might set Skechers up for a return to the public market down the road, once it’s had time to adjust and grow under private ownership.
For now, Skechers to go private signifies a strategic move to strengthen the company amidst external pressures. The focus will likely be on navigating the trade landscape and positioning for continued global growth.
Conclusion
The Skechers acquisition by 3G Capital is undoubtedly the biggest sneaker industry deal we’ve seen. It allows a major brand to adapt to challenging economic conditions by going private. Even though factors like tariffs played a part, the deal clearly shows the value 3G Capital sees in Skechers for the long haul. With familiar leadership still in place, this Skechers acquisition opens a new, private chapter for the well-known footwear brand.
