Skechers USA Inc. has agreed to be acquired by investment firm 3G Capital for approximately $9.42 billion, marking the largest buyout in the sector to date. The transaction, announced on May 5, 2025, will take Skechers private after 26 years as a publicly traded company.
About the Companies
Skechers USA Inc.
Founded in 1992 by Robert Greenberg, Skechers has grown into the third-largest athletic footwear brand in the United States, trailing only Nike and Adidas. Headquartered in Manhattan Beach, California, the company offers a diverse range of products, including performance and lifestyle footwear, apparel, and accessories for men, women, and children. In 2024, Skechers reported record revenues of $9 billion and a net income of $640 million, with approximately two-thirds of its sales generated from international markets.
3G Capital
3G Capital is a global investment firm known for its significant holdings in the food and beverage industry, including past acquisitions of Kraft Heinz and Burger King. Led by Brazilian billionaire Jorge Paulo Lemann, the firm is recognized for its aggressive cost-cutting strategies and long-term investment approach.
Deal Details
Under the terms of the agreement, Skechers shareholders can choose between two options:
- Cash Option: $63 per share in cash, representing a 30% premium over Skechers’ 15-day volume-weighted average stock price
- Mixed Option: $57 per share in cash plus one unlisted, non-transferable equity unit in a newly formed, privately held parent company of Skechers. The deal has been unanimously approved by Skechers’ board of directors and is expected to close in the third quarter of 2025, pending regulatory approvals. Financing for the acquisition will come from a combination of cash and debt, with JPMorgan Chase Bank providing debt funding.
Post-acquisition, Skechers will maintain its headquarters in Manhattan Beach, California, and its current executive leadership, including CEO Robert Greenberg and President Michael Greenberg, will remain in place.
Industry Impact
This acquisition occurs amid a challenging environment for footwear companies, particularly due to escalating U.S. tariffs on imports from China and Southeast Asia, where a significant portion of Skechers’ products are manufactured. The company has cited these tariffs as a factor in rescinding its annual forecast and has expressed concerns about potential inventory shortages.
By taking Skechers private, 3G Capital aims to shield the company from the short-term pressures of public markets, allowing for a focus on long-term strategic growth. This move could signal a trend toward privatization among other footwear and apparel companies facing similar market volatilities.
Market Reaction
Following the announcement, Skechers’ stock price surged approximately 25%, reflecting investor optimism about the premium buyout offer. Despite this uptick, the stock remains down about 8% for the year, highlighting the broader challenges the company faces in the current economic climate.