Shares of Skechers (SKX) skyrocketed Monday after the lifestyle footwear company announced it will be acquired by private equity giant 3G Capital in a deal valued at approximately $9.4 billion.
The transaction, which offers a 30% premium to the stock’s 15-day volume-weighted average price, sent shares up nearly 25%, marking the stock’s largest single-day gain since 2017.
3G Capital will pay $63 per share in cash for all outstanding Skechers stock. Alternatively, shareholders can opt for $57 in cash and one unlisted, non-transferable equity unit in a newly formed private parent company. The deal has already secured backing from shareholders controlling a majority of voting rights, virtually guaranteeing its passage. The transaction is expected to close in the third quarter of 2025.
A Premium Bet on Value and Stability
The acquisition comes at a turbulent time for Skechers. While the company posted $9 billion in revenue in 2024—nearly double its 2020 levels—its stock was down roughly 8% year-to-date prior to the announcement. Skechers had recently withdrawn its full-year financial guidance, citing macroeconomic headwinds, including rising tariffs and strained U.S.-China trade relations. The brand, which sources much of its inventory from Asian manufacturing hubs such as Vietnam and China, faces rising costs as global trade tensions escalate.
Despite the challenges, 3G Capital is betting big on Skechers' long-term brand value and resilience. Known for its cost-conscious, comfort-first approach to footwear, Skechers has built a loyal consumer base amid inflation and shifting spending habits. Endorsements from global athletes like Joel Embiid and Harry Kane have helped reinforce the brand’s international appeal.
Leadership Continuity, Strategic Breathing Room
CEO Robert Greenberg, who founded Skechers in 1992, will remain at the helm, along with President Michael Greenberg and the current executive team. The company’s headquarters will stay in Manhattan Beach, California. Analysts say the decision to stay private may help the company navigate mounting macro pressures without the constant scrutiny of Wall Street.
“This partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the company’s long-term growth,” said Robert Greenberg in a statement.
The timing is notable. Skechers’ total debt climbed to nearly $2 billion at the end of 2024, while its cash reserves fell to $1.23 billion—its weakest liquidity position in years. The infusion of capital and removal from the public markets could allow management to invest in supply chain strategies and pricing adjustments without short-term investor pressure.
Unlikely Bidding War Amid Trade Pressures
While some investors speculated on a possible counter-offer, Needham analyst Tom Nikic called that scenario unlikely. Economic uncertainty, potential exposure to volatile tariffs, and Skechers’ historically adversarial relationships with competitors like Nike and Adidas—both of which have previously sued the company—would likely dissuade other suitors.
“Given all the factors, it seems to us that the most likely scenario is that the deal goes through as-is,” Nikic wrote.
In the wider market, shares of other footwear stocks rallied in the wake of the news. Crocs (CROX), Puma, Asics, and Deckers (DECK) all posted gains on Monday, signaling a broader vote of confidence in the retail footwear sector. Meanwhile, the S&P 500 slipped 0.5%.
For now, investors in Skechers are celebrating a rare win in a tough retail environment—and a quiet brand with strong fundamentals is about to step into a new chapter.
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