Skechers Gets a $9 Billion Cash Grab by 3G Capital!
Footwear corporation Skechers to be purchased for $9 billion and transitioned to private ownership by 3G Capital
Hey there! Guess who's the latest star in the corporate world? That's right, it's none other than Skechers, the footwear juggernaut!
3G Capital, the formidable global investment firm, has set its sights on Skechers and is ready to shell out a whopping $9 billion to take the company private. Not too shabby, huh?
The announcement came this Monday, with the deal's value equivalent to a cool $63 per share - that's a staggering 30% premium compared to Skechers' average stock price over the last fortnight!
Drumroll, please! The Skechers board, in a unanimous decision, approved the deal. Now, isn't that music to our ears?
So, what does this mean for our favorite shoe company? Well, for starters, Robert Greenberg, the man behind Skechers' throne as Chairman and CEO, remains in his post, leading the troop with his trusty management team. The company headquarters will also stay put in its beloved hometown, Manhattan Beach, California.
Mark your calendars! The transaction is slated to be a done deal during the third quarter of this year, assuming all the usual regulatory approvals and whatnot go smoothly.
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The Lowdown on Skechers and 3G Capital
Skechers U.S.A., Inc., the veteran footwear company based in Manhattan Beach, California, has grown into the third-largest global footwear giant, racking up approximately $9 billion in annual sales. In the first quarter of 2025, Skechers reported a record sales figure of $2.41 billion, marking a 7.1% year-on-year growth[2]. The company is notorious for its comfort-focused shoes and the skilled leadership of Robert Greenberg, its chairman and CEO.
3G Capital, on the other hand, is a renowned global investment firm, known for its off-broadway, long-term investment approach. The firm often takes companies private to set the stage for strategic restructuring. 3G Capital boasts a glittering portfolio of iconic consumer brands, having previously invested in Anheuser-Busch, Burger King, and Heinz[3].
The Juicy Details of the Acquisition
- The Price Tag: 3G Capital plans to pay $63 per share in cold, hard cash for every Skechers share, representing a 30% premium over the company's 15-day volume-weighted average stock price[4][5].
- The Catch: Existing Skechers shareholders can choose between receiving $57 in cash and one unlisted, non-transferable equity unit in the newly minted, privately held company that will be Skechers' parent post-transaction[3][4].
- The New Normal: Once the deal is sealed, Skechers will phase out its days as a publicly traded entity and will become a privately held company. Yet, it will continue to be led by its current management team and remains headquartered in Manhattan Beach[2].
- The Conditions: The deal hinges on the typical closing conditions and regulatory approvals, with an expected closure in the third quarter of 2025[3].
- The Legal Eagles: Latham & Watkins is advising Skechers on the transaction, while Paul, Weiss is counseling 3G Capital[3][4].
- As the deal closes, Skechers' strategic restructuring may have the potential to drive further growth, given 3G Capital's expertise in long-term investments and the off-broadway approach, akin to the transformation seen in brands like Burger King and Heinz.
- In Seattle, established financial institutions might be intrigued by the investing prospects presented by Skechers' transaction with 3G Capital, considering the steep premium and the unique blend of finance, business, and the footwear industry, much like the renowned portfolio of investment brands under 3G Capital's stewardship.
