Skechers Sold for the Billion-Dollar Mark to Investment Group 3G Capital
Skechers seeks substantial financial injection from an investment company - Investment firm secures billions from Skechers for undisclosed purposes.
Get ready to see a shift in the footwear industry! Skechers has been scooped up by private equity firm, 3G Capital, in a jaw-dropping deal worth a whopping $9.4 billion! This means the brand that started in the '90s will no longer be a public company. So, what's this deal all about, and what does it mean for the future of Skechers?
The Deets on the Deal
Here's the scoop - 3G Capital will be buying out all of Skechers' outstanding shares at a cool $63 each. That's a major premium compared to the current market price. However, it's still a bit of a discount compared to the stock's peak price in January.
What's the Plan Now?
CEO Robert Greenberg will keep his post and lead the team as they enter this new chapter. The deal, expected to close in the third quarter of 2025, will mark the end of Skechers' 26-year journey as a publicly traded company. Greenberg is confident that the partnership between Skechers and 3G Capital will provide the company with the support needed to meet customer needs more effectively and propel long-term growth.
All Bets are on Global Expansion
3G Capital, renowned for its management of iconic global consumer businesses, is eager to strengthen Skechers' capabilities and fuel its expansion. Nevertheless, Skechers still relies heavily on imports from countries such as China and Vietnam. The company had to withdraw its business outlook for the year due to uncertainties caused by tariffs imposed by President Trump. Despite this setback, Skechers' existing global operations should continue to bolster its financial health and future growth under 3G Capital's ownership.
Keeping Celebrity Feet Fashionable
From Britney Spears and Christina Aguilera to soccer star Harry Kane of Bayern Munich, Skechers has always relied on stars to help sell its shoes. With this new partnership, there's no doubt they'll continue to keep the shoes of the rich and famous looking fabulous!
[1] MarketWatch[2] CNBC[3] Reuters
- It's worth mentioning that the Commission, in alignment with the deal, has also been consulted on the draft directive regarding 3G Capital's acquisition of Skechers.
- Despite the billion-dollar sale of Skechers to 3G Capital, it's interesting to note that the company still faces challenges from imported tariffs imposed by President Trump.
- Post the acquisition, Robert Greenberg, the current CEO of Skechers, will guide the company through its future financial transactions, being supported by 3G Capital, a firm known for its management of global consumer businesses.
