Blastoff for Skechers as 3G Capital Takes the Shoe Retailer Private for $9.4B
Skechers' Shares Surge with Announced $9.4 Billion Private Acquisition by 3G Capital
Sky-high excitement surrounded Skechers (SKX) on Monday following the announcement that global investment giant 3G Capital would be snapping up the lifestyle footwear brand for an impressive $9.4 billion. tossed a generous premium to investors and offered them the option to rollover a portion of their stake in the newly formed private entity.
Investors holding Skechers shares will receive $63 per share, representing a 27.6% premium over the stock's closing price on Friday. There's also an option to go for the unusual combo of $57 per share and one unlisted, non-transferable equity unit ("LLC Unit") in the newly minted parent company of Skechers ("New LLC").
Skechers CEO Robert Greenberg praised the partnership, saying it would empower the team to cater to customer needs effectively while fostering long-term growth for the brand. The executive team, including President Michael Greenberg, will continue to lead the charge, with operations remaining in the original location at Manhattan Beach, California.
National Market saw Skechers shares rocket roughly 25% during midday trading on Monday, despite the stock's overall 8% decline in 2025.
Insights:
The strategic acquisition of Skechers signifies a blend of immediate shareholder rewards and long-term growth potential under private ownership. Skechers, as the third-largest global footwear brand, anticipates flexing its supply chains for optimal expansion on a global scale, thanks to 3G's consumer-focused portfolio.1
With the transaction valued at $9.4 billion, Skechers shareholders stand to gain substantially. The all-cash offer translates to a premium of 27.6% - 30% compared to recent trading prices.2
The uniquely structured deal provides investors with some leeway, allowing them to choose between taking full cash or a partial cash and equity rollover option in the private entity.3
Privatization allows Skechers to steer clear of market volatility and trade risks associated with US-China tariffs and potential Trump-era policies.2
Closure of the deal is slated for Q3 2025, ensuring the brand avoids public market scrutiny during restructuring.3
- The strategic acquisition of Skechers by 3G Capital is enabling a blend of immediate shareholder rewards with long-term growth potential under private ownership.
- Investors holding Skechers shares will receive a substantial premium of $63 per share, or an option for $57 per share and an unlisted, non-transferable equity unit in the newly formed private entity.
- The agreement between Skechers and 3G Capital provides investors with the option to choose between taking full cash or a partial cash and equity rollover in the private entity.
- The privatization of Skechers allows the company to avoid market volatility and trade risks associated with US-China tariffs and potential Trump-era policies.
- The closure of the deal is scheduled for Q3 2025, ensuring the brand avoids public market scrutiny during its restructuring phase. This transaction in the finance and business sector is set to significantly impact the investing landscape and potentially inspire other similar moves in the future.
