Skechers, which claims to be the world’s third-largest shoe brand, on Monday said it’s agreed to be acquired in a roughly $9 billion deal by Brazilian private equity firm 3G Capital.
Skechers is being acquired for $9 billion and taken private by the investment firm by 3G Capital.
The board of Skechers unanimously approved the deal, the companies said Monday.
The offer of $63 per share represents a premium of 30% to Skechers’ 15-day volume-weighted average stock price, the companies said.
Skechers shares jumped 25% at the opening bell Monday, to $61.72.
Skechers reported a record $9 billion in revenue in 2024 with net earnings of $640 million.
In a press release announcing the deal on Monday, the companies did not mention the potential impacts of President Donald Trump’s tariffs on its business going forward. An email requesting comment was not immediately returned.
China accounts for 15% of Skecher’s revenue, according to the data firm FactSet.
About 97% of the clothes and shoes purchased in the U.S. are imported, predominantly from Asia, according to the American Apparel & Footwear Association. Using factories overseas has kept labor costs down for U.S. companies, but neither they nor their overseas suppliers are likely to absorb price increases due to new tariffs.
Why it matters: Skechers is the sort of consumer products maker that could get hit hard by Trump tariffs, and recently withdrew its annual guidance due to the uncertainty.
- It currently imports all of its shoes sold in the U.S., including around 40% from China and 40% from Vietnam.
Zoom in: 3G will pay $63 per share, which represents a 27.6% premium over Friday’s closing price.
- Skechers shareholders also get an unusual option to receive $57 per share, and then roll over the remainder into the new, unlisted entity owned by 3G.
The bottom line: This isn’t 3G’s first major consumer deal, having previously purchased such companies as Burger King and Kraft Heinz.
Following completion of the transaction, the company will continue to be led by Skechers Chairman and CEO Robert Greenberg and his management team. Its headquarters will remain in Manhattan Beach, California where it was founded more than three decades ago.
