Skechers to go private for $12.2 billion amid US tariff fallout

Bengaluru – Skechers has agreed to be taken private by 3G Capital for US$9.42 billion (S$12.2 billion) in the footwear industry’s biggest buyout to date, exiting public markets after 26 years as the popular shoe brand grapples with the impact of steep US tariffs.

Investment firm 3G Capital has offered US$63 per Skechers share in cash, the footwear brand said on May 5.

This represents a 28 per cent premium to the stock’s close on May 2, according to Reuters calculations.

Skechers shares jumped 25 per cent to US$61.86 on the news, regaining some ground after dropping nearly 30 per cent in 2025 as the company withdrew its annual results forecast in April and warned of the fallout from US President Donald Trump’s 145 per cent import tariff on Chinese goods.

China accounts for the bulk of imports for the brand’s US business.

Needham analyst Tom Nikic said the deal talks may have been accelerated by the volatile macro environment – driven by tariffs, weakening consumer sentiment and troubled US-China relations – and the company may have wished to navigate these challenges without being under Wall Street’s scrutiny.

Skechers, Nike and Adidas America are among the companies that have urged Mr Trump to exempt shoes from reciprocal tariffs, as American businesses face higher costs and shoppers tighten spending to brace themselves 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.

It now has roughly 5,000 retail stores in more than 120 countries.

Mr Nikic said the deal is “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 that Skechers is not running an auction and the deal is bilateral as 3G Capital has had a long relationship with the Greenbergs.

Chief executive and founder Robert Greenberg, 85, will continue to lead the firm, while president Michael Greenberg and operating chief David Weinberg will also retain their roles.

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

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