3G Capital Buys Skechers for $9.4B, Plans to Take It Private

Investment firm 3G Capital announced it will acquire Skechers USA Inc. $SKX ( ▲ 24.35% ) for $9.4 billion, marking one of the largest privatization deals in the footwear sector's history^1,^5.

The Manhattan Beach, California-based footwear giant, known for its comfortable and affordable shoes, will be taken private after nearly three decades as a publicly traded company.

Deal Structure and Financial Details

Under the terms of the agreement unanimously approved by Skechers' board, 3G Capital will pay $63 per share in cash, representing a premium of approximately 28% over Skechers' closing price on Friday^5,^10.

This significant premium reflects 3G Capital's confidence in Skechers' long-term growth potential despite current market challenges.

Investors have also been offered an alternative payment structure:

Payment Options for Skechers Shareholders:
- Standard Option: $63 per share in cash
- Alternative Option: $57 per share plus one unlisted, non-transferable equity unit in the newly formed parent company of Skechers

The transaction, expected to close in the third quarter of 2025, will be funded through a combination of cash from 3G Capital and debt financing from JPMorgan Chase Bank^1,^5.

According to sources, JPMorgan is set to lead approximately $5 billion in debt financing to support the acquisition, with the debt sale likely to launch after the Memorial Day holiday on May 26^8.

Following the announcement, Skechers' stock surged by approximately 25% in trading, though the shares still remain down about 8% for the year 2025.

Leadership Continuity and Corporate Structure

One key aspect of this deal that has reassured market observers is the continuity in leadership. Post-acquisition, Skechers will continue to be led by its current management team^2,^9:

The company's headquarters will remain in Manhattan Beach, California, where it was founded more than three decades ago^10.

This leadership continuity suggests that 3G Capital values the expertise and vision of the current management team and plans to build upon their successful strategy rather than implement radical changes.

Skechers' Performance and Growth Trajectory

The acquisition comes at an interesting juncture in Skechers' business evolution. The company has been setting impressive performance records despite challenging market conditions^2.

In its most recent financial reporting, Skechers announced:

Q1 2025 Financial Highlights:
- Total sales: $2.41 billion (7% year-over-year increase)
- Wholesale sales: $1.53 billion
- Direct-to-Consumer sales: $879.36 million
- Net earnings: $225.07 million
- Earnings per share: $1.34 (diluted)

The company reported record sales of $8.97 billion for fiscal year 2024, marking a 12.5% increase over 2023^6.

This strong performance demonstrates Skechers' resilience and growth potential, which likely made it an attractive acquisition target for 3G Capital.

Furthermore, Skechers has been pursuing an aggressive physical retail expansion strategy.

The company ended Q1 2025 with 5,296 stores worldwide, including 1,787 company-owned locations. For 2025, Skechers had announced plans to open an additional 180 to 200 new stores, continuing its global retail footprint expansion^6.

Market Context and Timing Considerations

The timing of this acquisition is particularly noteworthy given the current economic climate and trade policy environment.

Last month, Skechers withdrew its full-year 2025 financial outlook, citing "macroeconomic uncertainty stemming from global trade policies"^2.

The footwear industry has been significantly impacted by the Trump administration's trade policies, particularly the 145% import tariff on Chinese goods^5,^13.

This challenging environment may have influenced Skechers' decision to go private. Industry analysts suggest that the company may prefer to navigate these uncertainties away from the scrutiny of public markets and quarterly earnings pressures^2.

Key Challenges Facing Skechers:
- 145% import tariff on Chinese goods
- Significant dependency on Chinese manufacturing
- Declining consumer spending in footwear sector
- Global economic uncertainty
- Supply chain disruptions

Skechers, along with industry peers like Nike $NKE ( ▼ 2.12% ) and Adidas $ADDYY ( ▲ 0.16% ) , recently signed a letter from the Footwear Distributors and Retailers of America (FDRA) urging President Trump to exempt shoes from the reciprocal tariffs.

China accounts for a substantial portion of imports for Skechers' U.S. business, making these tariffs particularly impactful on the company's operations and profitability^5.

3G Capital's Strategic Play

For 3G Capital, the acquisition represents a significant departure from its traditional investment focus.

The Brazilian-based investment firm, controlled by billionaire Jorge Paulo Lemann, is primarily known for its investments in the food and beverage sector^5,^8.

This diversification into footwear suggests that 3G Capital sees significant untapped value in Skechers despite current trade uncertainties.

According to industry analysts, the deal implies that 3G is "putting real money to work" and taking a gamble that Skechers will remain a durable and profitable franchise beyond the current tariff situation^2.

The acquisition can be interpreted as a vote of confidence in the long-term prospects of the footwear industry, suggesting that 3G Capital believes the sector will eventually weather the current economic challenges and trade policy uncertainties^2.

Industry Implications and Competitive Landscape

This transaction represents the largest buyout in the footwear industry to date and could potentially trigger further consolidation in the sector.

As companies navigate the challenging trade environment and changing consumer behaviors, privately held operations may offer strategic advantages.

The footwear industry has been experiencing significant disruption from several factors:

Disruption Factors in the Footwear Industry:
- Changing consumer preferences toward casual and athletic styles
- Shift to online shopping accelerated by the pandemic
- Supply chain constraints and increased costs
- Trade policy uncertainties and tariffs
- Growing importance of sustainability and ethical manufacturing

Skechers has successfully positioned itself in the middle of the market, offering comfortable, stylish footwear at accessible price points. This positioning has helped the company grow consistently, with global sales reaching nearly $9 billion in 2024^6.

Looking Ahead: What's Next for Skechers?

The transition to private ownership under 3G Capital opens up new possibilities for Skechers' future development.

Without the pressure of quarterly earnings reports and public market scrutiny, the company may be able to make longer-term strategic investments and navigate the current trade challenges with greater flexibility^2.

3G Capital has historically employed an operational approach focused on cost-cutting and efficiency improvements in its portfolio companies.

However, given Skechers' strong growth trajectory and expansion plans, the investment firm may take a different approach focused on accelerating global growth and expanding market share.

The retention of the current management team suggests that 3G Capital values the institutional knowledge and vision of Skechers' leadership and plans to build upon their successful strategy rather than implement fundamental changes to the business model.

For the footwear industry as a whole, this acquisition signals that despite current challenges, there remains strong investor confidence in the long-term value of established brands with global reach and strong consumer loyalty.

As this transaction progresses toward its anticipated closing in the third quarter of 2025, we will be watching closely to see how 3G Capital's ownership influences Skechers' strategic direction and whether this marks the beginning of a broader trend of privatization in the consumer goods sector amid ongoing economic and trade policy uncertainties.