Skechers' performance has soared! Preparing for privatization, it has announced that it will be acquired by 3G Capital for $9.5 billion.

Skechers (Skechers USA Inc NYSE ticker SKX) announced on Monday that it will be acquired by 3G Capital for $9.5 billion and will be taken private. This acquisition marks the highest amount ever for a footwear brand. On the day the news was released, Skechers' stock price surged over 24% on Monday, closing at $61.39 per share. Before the announcement, Skechers had a market capitalization of approximately $7.4 billion, and upon completion of the acquisition, the valuation of this footwear company will skyrocket to $9.4 billion, bringing its nearly thirty-year public company tenure to an end as it becomes a private entity.

Skechers is the third largest footwear company in the world, founded by father and son Robert Greenberg and Michael Greenberg in 1992. It is still operated by the founders, and after the completion of the privatization transaction, the Greenberg family will retain the positions of CEO and President. 3G Capital has previously acquired Burger King and the Canadian coffee chain Tim Hortons, and was responsible for the merger of Kraft-Heinz.

According to Skechers, 3G Capital will repurchase 18 million shares of publicly traded Skechers stock through two methods, potentially acquiring shares at a cash price of $63 per share or purchasing shares at a price of $57 per share, along with shares of the new Limited Liability Company that will become Skechers' parent company, ( Limited Liability Company, abbreviated as LLC).

Robert Greenberg stated that over the past thirty years, Skechers has experienced tremendous growth. Given 3G Capital's outstanding performance in driving some of the most iconic global consumer goods companies to success, Skechers believes that this collaboration can support the team in utilizing expertise to meet the needs of consumers and clients while promoting the company's long-term growth. The acquisition is expected to be completed in the third quarter of this year.

3G Capital is not affected by tariffs and international trade and remains optimistic about Skechers' future performance.

In 2024, Skechers achieved a record performance of 9 billion, according to a recent investor report, with 62% of sales occurring outside the United States. The deal with 3G Capital comes at a time when uncertainty surrounding international sales and import tariffs is increasing, and Skechers will particularly feel the impact of these tariffs, as its manufacturing operations are primarily in overseas regions such as China and India.

The potential financial changes do not seem to have shaken 3G Capital's view on the deal. 3G Capital partners Alex Behring and Daniel Schwartz expressed great admiration for the business the team has built in the announcement and look forward to supporting Skechers in opening a new chapter.

Analysts say that Skechers' privatization could protect the company from Wall Street scrutiny.

Needham & Co. analyst Tom Nikic pointed out in a report that Skechers' privatization measures are quite surprising. However, he also stated that the macro overall environment (tariffs, consumer sentiment, U.S.-China relations, etc.) may have accelerated the acquisition decision, as the company may wish to address these challenges without scrutiny from Wall Street.

This article discusses Skechers' outstanding performance! Preparing for privatization, it has announced that it will be acquired by 3G Capital for $9.5 billion. First appeared in Chain News ABMedia.