From Yahoo Finance: 2025-05-05 08:59:00

Skechers has agreed to be taken private by 3G Capital for $9.42 billion, marking the footwear industry’s biggest buyout. The deal represents a 28% premium to Skechers’ stock price, which surged 25% on the news. The move comes amid challenges from U.S. tariffs, including a 145% import tariff on Chinese goods.

With China being a key source of imports for Skechers, the company faces increased costs due to tariffs imposed by President Donald Trump. Skechers, Nike, and Adidas America have urged Trump to exempt shoes from reciprocal tariffs to mitigate the impact on American businesses and consumers.

Skechers, founded in 1992, has grown into a global brand known for its comfort-first sneakers and celebrity tie-ups. The company’s aggressive global expansion and focus on value have helped it compete against legacy brands like Nike. Skechers has roughly 5,000 retail stores in over 120 countries.

The deal between Skechers and 3G Capital has raised eyebrows, as Skechers has been seen as a “family business” led by the Greenberg family. CEO Robert Greenberg, aged 85, will continue to lead the firm, with president Michael Greenberg and operating chief David Weinberg retaining their roles.

Buyout firm 3G Capital, controlled by Brazilian billionaire Jorge Paulo Lemann, is known for boosting margins through cost-cutting. The deal is expected to close in the third quarter of 2025, financed by a combination of cash from 3G Capital and debt financing from JPMorgan Chase Bank.

Read more: Skechers to go private for $9.42 billion in biggest sneaker industry deal