Skechers To Go Private After $9.4 Billion Acquisition by 3G Capital, Stock Price Soars

Skechers appears to be on a bit of a hot streak as of late: Not only has it seen its financial fortunes trend upward over the course of the past few years while others in the footwear and performance gear segment struggle (mostly notably, Nike), but news has now emerged that the company is set to go private following a $9.4 billion acquisition made by 3G Capital.

According to a May 5 news release shared to the Skechers website, 3G Capital has agreed to pay $63 per share in cash for Skechers — a figure which represents a 30% premium against the company’s 15-day volume-weighted average share price. Existing shareholders will also be offered an alternative mixed consideration option.

“We are thrilled to be partnering with Skechers and look forward to working with an entrepreneur of Robert’s caliber and the talented Skechers team. Skechers is an iconic, founder-led brand with a track record of creativity and innovation. We have immense admiration for the business that this team has built, and look forward to supporting the Company’s next chapter. Our team at 3G Capital is built to partner with companies like Skechers,” said Alex Behring, co-founder and co-managing partner, and Daniel Schwartz, co-managing partner, of 3G Capital.

Chairman and CEO Robert Greenberg was equally enthusiastic about the acquisition, reiterating Skechers’ success story over the course of the previous years before pivoting to give 3G Capital glowing praise.

“Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the Company’s long-term growth,” Greenberg said.

Greenberg will be remaining in his position as CEO following the purchase, as will President Michael Greenberg and COO David Weinberg.

Skechers Stock Price Soars Following News of 3G Capital Deal

Investors seemed enthusiastic over the prospect of the deal, with the stock rising to $61.48 as of 1:04 p.m. ET on May 5 after resting at around $49.84 as trading closed on Friday, May 2.

And while it may seem like a sure thing when the buyout offer will see shareholders awarded $63 per share, only those who owned Skechers stock prior to the close of trading on May 2 are eligible to claim the mixed consideration option. That mixed consideration option is tentatively valued at $57 per share in cash valuation, in addition to one LLC unit per share. A maximum of 20% of outstanding shares can avail of this mixed consideration option, and only those shareholders who have made a definite election in favor of this option will be considered.

Skechers Joins Nike, Under Armour, and Others in Urging Trump To Nix Tariffs

The purchase of Skechers by 3G Capital follows recent rumblings of discontent among sneaker manufacturers and retailers concerning the ongoing tariffs enacted by President Donald Trump against many competing nations, most notably China.

Joined by Nike, Under Armour, and other manufacturers and retailers in the U.S. market, Skechers was party to a letter delivered to the Trump administration last week, which outlined their position on the tariff matter

“American footwear businesses and families face an existential threat from such substantial cost increases,” the companies wrote, per CNN. “This is an emergency that requires immediate action and attention.”