Skechers to Be Taken Private in $9.42B Deal
Skechers has agreed to be taken private by 3G Capital for $9.42 billion in the footwear industry's biggest buyout to date, reports Reuters. The popular shoe brand is exiting public markets after 26 years as it grapples with the impact of steep U.S. tariffs. Investment firm 3G Capital has offered $63 per Skechers share in cash, the footwear brand said on Monday. The deal is expected to close in the third quarter of 2025.
Skechers CEO and founder Robert Greenberg, aged 85, will continue to lead the retailer, while president Michael Greenberg and operating chief David Weinberg would also retain their roles. Buyout firm 3G Capital, controlled by Brazilian billionaire financier Jorge Paulo Lemann, is best known for its investments in the food and drinks sector through companies such as Kraft Heinz
Total Retail's Take: In a surprise move shaking up the footwear industry, Skechers is breaking from its long-standing history as a family-operated public entity to go private. According to Reuters, Needham analyst Tom Nikic said the deal was "very surprising" as Skechers has always been viewed as a "family business," with the founding Greenberg family highly involved in its operations. Sources told Reuters that Skechers was not running an auction and the deal was bilateral as 3G Capital has had a long relationship with the Greenbergs. The deal comes after the company withdrew its annual results forecast in April and warned of the fallout from President Donald Trump's 145 percent import tariff on Chinese goods. China accounts for a bulk of imports for the brand's U.S. business.
Skechers will cease trading on the New York Stock Exchange upon completion of the deal. The timing potentially implies that Skechers and 3G Capital believe the next few quarters would be best navigated out of the public markets as macroeconomic uncertainty continues. 3G is taking a gamble on Skechers being a durable franchise that will operate profitably at the end of this tariff period, according to Evercore analyst Jesalyn Wong.
Following the completion of the transaction, Skechers will continue to execute its ongoing strategic initiatives, including designing innovative product, international development, direct-to-consumer expansion, domestic wholesale growth, and strategic investments in global distribution, infrastructure and technology, the company said in a press release.
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
