Shoe brand Skechers to be acquired, taken private in $9.4B deal

Footwear brand Skechers announced Monday it is being acquired for about $9.42 billion and taken private by the investment firm by 3G Capital, in what is seen as the industry’s biggest buyout to date.

The board of Skechers unanimously approved the deal, the companies said Monday.

The offer of $63 per share represents a premium of 30% to Skechers’ 15-day volume-weighted average stock price, the companies said.

Shares of Skechers jumped 25% at the opening bell Monday, to $61.72. The company reported a record $9 billion in revenue in 2024 with net earnings of $640 million.

In a press release announcing the deal on Monday, the companies did not mention the potential impacts of U.S. President Donald Trump’s tariffs on its business going forward. An email requesting comment was not immediately returned.

China accounts for 15% of Skecher’s revenue, according to the data firm FactSet.

About 97% of the clothes and shoes purchased in the U.S. are imported, predominantly from Asia, according to the American Apparel & Footwear Association. Using factories overseas has kept labor costs down for U.S. companies, but neither they nor their overseas suppliers are likely to absorb price increases due to new tariffs.

Skechers withdrew its annual results forecast last month, citing the Trump administration’s trade policies that have jolted the global economy and dented consumer sentiment.

Trump has ratcheted up import tariffs on Chinese goods to 145%. China makes up for a bulk of imports for the brand’s U.S. business.

Skechers, Nike and Adidas America are among the companies that have urged Trump to exempt shoes from reciprocal tariffs, as American businesses face higher costs and shoppers tighten spending to brace for a potential rise in prices.

Founded in 1992, California-based Skechers started out as a brand focused on men’s street style with the launch of its popular shoe “Chrome Dome,” but has come to be known for its comfort-first sneakers.

The company has held up against stiff competition from legacy brands like Nike and newer entrants such as Hoka, thanks in part to its aggressive global expansion and focus on value. Its shoes are priced anywhere between $75 and $150 on its website, and the company has roughly 5,000 retail stores in over 120 countries.

Its marketing tie-ups with celebrities including Britney Spears and Kim Kardashian have also helped the brand boost its appeal and stay relevant.

Deal ‘surprising’

Needham analyst Tom Nikic said the deal was “very surprising” as Skechers has always been viewed as a “family business,” with the founding Greenberg family highly involved in the operations.

Sources told Reuters Skechers was not running an auction and the deal was bilateral as 3G Capital has had a long relationship with the Greenbergs.

3G Capital, controlled by Brazilian billionaire financier Jorge Paulo Lemann, is best known for its investment in the food and drinks sector through companies such as Kraft Heinz.

The Skechers deal is expected to close in the third quarter of 2025 and will be financed through a combination of cash provided by 3G Capital as well as debt financing that has been committed by JPMorgan Chase Bank.

Following completion of the transaction, the company will continue to be led by Skechers Chairperson and CEO Robert Greenberg and his management team. Its headquarters will remain in Manhattan Beach, California where it was founded more than three decades ago.