Skechers announced on Monday (May 5) that the company has agreed to a $9.42 billion cash acquisition and privatization by the private equity fund 3G Capital, making it the largest acquisition in the global footwear industry to date. Due to its heavy reliance on manufacturing in China, the company is facing challenges in dealing with the impact of high tariffs imposed by the United States.
According to a statement from Skechers, 3G Capital has proposed to acquire the company’s stocks at a cash price of $63 per share, representing a premium of about 28% over the closing price on Friday. Reuters calculated that Skechers’ stock surged 25% on the day to close at $61.86.
The company’s shares have declined by nearly 30% this year, and in April, Skechers withdrew its full-year financial forecast and warned of the significant impact of President Trump’s 145% import tariffs on Chinese goods.
Skechers’ business in the United States heavily relies on imported goods from China, accounting for up to 40%. Company executives stated last month that the quantity of products entering the U.S. from China will decrease.
The company, along with other footwear manufacturers like Nike and Adidas America that also rely on Chinese manufacturing, jointly sent a letter to the Footwear Distributors and Retailers of America, urging President Trump to exclude footwear from the tariff list.
Founded in 1992 in California, Skechers is one of the world’s largest footwear brands, popular for its comfortable leisure and athletic shoes like “Chrome Dome”. The company went public in 1999 at $11 per share and achieved a revenue of $8.97 billion in 2024.
According to The Wall Street Journal, Skechers has recently delved into high-performance footwear production and sponsored renowned athletes like NBA star Joel Embiid and former Bayern Munich forward Harry Kane. Skechers executives stated that their market prospects are broad as stars become disappointed with other brands.
Analyst Tom Nikic from Needham expressed that this deal is “very surprising” as Skechers has always been seen as a “family business” with the Greenberg family deeply involved in daily operations.
Sources familiar with the matter told Reuters that Skechers did not publicly solicit bids but engaged in bilateral negotiations with 3G Capital, with both parties maintaining a long-term cooperative relationship.
Founder and CEO Robert Greenberg will continue to lead the company, while President Michael Greenberg and COO David Weinberg will also remain in their roles.
The private equity fund 3G Capital is controlled by Brazilian billionaire financier Jorge Paulo Lemann, known for investments in the food and beverage industry, including brands like Kraft Heinz.
Skechers is expected to complete the privatization deal in the third quarter of 2025, with funding for the transaction provided jointly by 3G Capital’s fund and debt financing committed by JPMorgan Chase.