3G Capital acquires Skechers for $9.4 billion amid trade turmoil
- 3G Capital has agreed to purchase Skechers for $9.4 billion, offering $63 per share in cash.
- The deal has been unanimously approved by Skechers' board and is expected to close in the third quarter.
- This acquisition occurs amidst economic uncertainty in the footwear industry, largely influenced by ongoing tariffs.
In the United States, private equity firm 3G Capital has announced a significant acquisition of Skechers, a prominent footwear company, for a total valuation of $9.4 billion. This deal includes an offer of $63 per share, representing a 30% premium over Skechers' previous stock price. The Skechers board has unanimously approved the agreement, signaling confidence in the strategic partnership with 3G Capital. The acquisition marks a pivotal moment for Skechers, which has faced challenges amid ongoing global trade uncertainties. The footwear industry, particularly in the U.S., has been under pressure due to tariffs enacted during President Donald Trump's administration. Companies like Skechers, Nike, and Adidas have voiced concerns regarding these tariffs and the potential existential threats they pose to their operations and profitability. The footwear industry relies heavily on imports, particularly from Asia, with about 97% of goods sourced overseas. This dependence on foreign manufacturing has made U.S. companies vulnerable to rising costs resulting from tariffs, which could ultimately affect pricing and market demand. Despite these macroeconomic challenges, 3G Capital has maintained a long-term interest in acquiring Skechers. The firm believes in the company’s potential for growth even in a turbulent economic environment. As part of the transition, Skechers will be taken private, and its management team, led by CEO Robert Greenberg, will continue to execute the company's existing strategies and goals. This management continuity aims to reassure stakeholders about the company's direction during this pivotal period. The financial performance of Skechers has shown resilience, as seen in its record revenue of $9 billion in 2024, underscoring a robust brand presence in the footwear market. Although the company pulled its full-year forecast earlier in the year due to economic uncertainties, it still recorded significant sales. As the third largest footwear brand globally, Skechers will look to navigate this acquisition as a means to strengthen its operations and counter the threats posed by external economic pressures, ultimately striving for long-term success in partnership with 3G Capital.