Skechers, the third largest footwear company in the world, agreed Monday to be acquired by investment firm 3G Capital in a deal valued at $9.4 billion, marking one of the largest transactions in the footwear industry to date.
The transaction comes at a time when the footwear industry faces significant uncertainty due to President Donald Trump’s recent tariff policies, which have particularly affected companies with manufacturing operations in China.
Under the terms of the agreement, Skechers shareholders will receive $63 per share in cash, representing a 30% premium over the company’s recent average trading price. Alternatively, investors can opt for $57 per share plus one equity unit in the newly formed private entity.
The deal arrives shortly after Skechers withdrew its annual financial forecast in April, citing concerns about the impact of Trump’s 145% import tariff on Chinese goods. China accounts for approximately 15% of the company’s revenue, according to data from FactSet.
“One of the largest founder-led consumer product companies in the world with $9 billion in annual sales, Skechers’ significant growth over the past 30 years has been driven by a relentless focus on delivering style, comfort, quality, and innovation at an affordable price,” the companies stated in their announcement.
The footwear giant reported record revenue of $9 billion in 2024, with net earnings of $640 million. Approximately two-thirds of the company’s revenue comes from international markets.
Robert Greenberg, Skechers’ founder and CEO, will continue to lead the company along with his management team following the acquisition. The Greenberg family, which maintains significant ownership in the company, has agreed to receive mixed consideration in the transaction.
3G Capital, controlled by Brazilian billionaire Jorge Paulo Lemann, is known for its investments in consumer brands. The firm has previously made significant investments in food and beverage companies including Kraft Heinz.
“The deal was bilateral as 3G Capital has had a long relationship with the Greenbergs,” according to Reuters.
The acquisition is expected to be financed through a combination of cash from 3G Capital and debt financing committed by JPMorgan Chase Bank. The transaction has been unanimously approved by Skechers’ board of directors and is expected to close in the third quarter of 2025.
Skechers shares jumped approximately 25% on Monday following the announcement, reaching $61.86 after declining nearly 30% earlier this year amid tariff concerns.
The deal represents a strategic pivot for Skechers during a challenging period for manufacturers with significant exposure to international supply chains. By going private, the company may gain flexibility to navigate trade uncertainties without the pressures of quarterly earnings expectations.
Skechers, alongside competitors Nike and Adidas, had previously signed a letter from the Footwear Distributors and Retailers of America urging President Trump to exempt shoes from the new tariffs.
