Skechers Sold to 3G Capital for Crippling Cost: $9.4 Billion
Skechers Agrees to Become Private Entity with $9.4 Billion Buyout by 3G Capital
It's bleedin' official! Private equity heavyweight, 3G Capital, has struck a multimillion-dollar deal to acquire popular footwear brand, Skechers, y'all.
On Monday, the duo announced the jackpot deal, with Skechers confirming their board had given the green light—unanimously, no less.
How much are we talking about here? A staggering $9.4 billion!
So, what's the game plan, you might ask? Well, 3G Capital intends to purchase outstanding Skechers shares at $63 each. If that isn't enough for you stock enthusiasts, existing shareholders can also opt for $57.00 in hard cash and an unlisted, non-transferable equity unit in the newly-formed, private company that'll be Skechers' new parent company, according to the footwear maestros themselves.
The deal's set to close shop in Q3 of the year, but there's one catch – it's subject to the typical strings attached (think regulatory approvals, etc.), as per Skechers.
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Once Skechers gets its own private party, it'll bid adieu to the NYSE, where it's been dancing for nearly 26 years with the "SKX" ticket.
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Now, I know what you're thinking – what's our boy CEO, Robert Greenberg, got to say about this? Well, he's excited to be entering "the next chapter in partnership with the global investment juggernaut, 3G Capital."
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He reckons this power coupling will provide ample support to Skechers' talented crew as they cook up award-winning goodies and bulldoze the competition. The current management team, which includes Robert and his brother, President Michael Greenberg, will still be calling the shots post-transaction, according to Skechers.
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Curious about the strategic plans after the acquisition? Fear not! They've got an arsenal of tricks up their sleeves:
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- Dedication to Long-term Growth: As a private entity, Skechers can focus on long-term strategies, unaffected by quarterly earnings reports, giving them room for funding innovation and expanding their product offerings.
- Global Conquest: Partnering with 3G Capital, with expertise in global consumer businesses, will enhance Skechers' global footprint and strengthen their position in essential markets.
- Operational Efficiency: The new status will free them from the need for public disclosure, enabling more strategic decision-making and less scrutiny from the market.
- Navigating External Pressures: As a private firm, Skechers will be able to tackle external pressures more effectively, like tariffs and supply chain challenges.
- Investment in Innovation: With their strategic partnership, Skechers is poised to invest in innovation and upgrade their comfort-focused product range to appease modern consumers' evolving tastes.
In late April, Skechers stated they'd raked in $2.41 billion in sales in Q1, posting net earnings of $202.4 million. However, they rescinded their annual guidance for 2025 due to "economic uncertainty" from global trade policies.
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Skechers—co-founded by Robert and Michael Greenberg in 1992—is renowned as the world's third-largest footwear company, shipping a jaw-dropping 297 million units in the previous year alone.
As of Tuesday, the day after unveiling the 3G Capital deal, Skechers' market cap hovered around $9.19 billion.
For the full scoop on this blockbuster acquisition and more juicy financial tidbits, stay tuned to Fox Business!
- The deal, worth a staggering $9.4 billion, has been granted approval by Skechers' board unanimously, moving forward with 3G Capital's acquisition of outstanding Skechers shares at $63 each.
- Existing shareholders have the option to choose $57.00 in hard cash and an unlisted, non-transferable equity unit in the newly-formed, private company that will become Skechers' parent company.
- The deal is subject to typical regulatory approvals and is set to close by the end of Q3 this year.
- Once the deal is finalized, Skechers will part ways with the NYSE, where it has been listed for nearly 26 years under the "SKX" ticket.
- CEO Robert Greenberg is excited about entering the next chapter in partnership with global investment juggernaut, 3G Capital, which will provide ample support to Skechers' talented team.
- The current management team, including Robert and President Michael Greenberg, will continue to lead the company post-transaction.
- The strategic plan after the acquisition includes a focus on long-term growth, global expansion, operational efficiency, navigation of external pressures, and investment in innovation to cater to modern consumers' evolving tastes.
