- Skechers USA Inc. (SKX) shares jumped 25% to $61.73 in early trading after 3G Capital agreed to acquire the company for $9.4 billion, or $63 per share, a 30% premium, ending its nearly 30-year public market run.
- The acquisition comes amid retail and footwear sector challenges, with Skechers recently supporting a trade group letter seeking exemptions from President Trump’s tariffs targeting overseas supply chains.
- CEO Robert Greenberg highlighted 3G Capital’s expertise in global consumer brands, positioning the partnership to drive long-term growth and support Skechers’ team in meeting consumer demands.
Skechers USA Inc. (SKX) shares spiked 25% to $61.73 in early trading on Monday, propelled by the announcement of its acquisition by private equity firm 3G Capital for $9.4 billion, or $63 per share, a deal that values the footwear giant at a 30% premium to its recent public market valuation. The transaction, which ends Skechers’ nearly 30-year tenure as a publicly traded company, reflects a strategic pivot at a challenging juncture for the retail and footwear sectors, both grappling with reduced discretionary spending and disruptions from President Donald Trump’s trade war targeting overseas supply chains. The acquisition price aligns with premiums observed in comparable takeover deals, underscoring 3G Capital’s confidence in Skechers’ enduring brand strength and growth potential.
The partnership with 3G Capital, a firm renowned for steering global consumer brands to success, is poised to bolster Skechers’ long-term strategy, as articulated by CEO Robert Greenberg, who emphasized the firm’s ability to support the company’s talented team in meeting consumer and customer demands. This move comes amid heightened industry pressures, exemplified by Skechers’ recent endorsement of a Footwear Distributors and Retailers of America letter signed by 76 footwear brands requesting exemptions from Trump’s tariffs, which threaten to inflate costs for footwear companies reliant on international manufacturing. The tariff environment has already strained margins across the sector, with imported goods facing increased scrutiny and potential cost hikes, making the timing of the acquisition particularly significant.
Investor enthusiasm, reflected in the 25% stock rally, signals approval of the deal’s premium and the prospect of Skechers thriving under private ownership, free from the volatility of public markets. 3G Capital’s track record with iconic consumer businesses suggests a focus on operational efficiency and global expansion, which could position Skechers to navigate the trade war’s challenges while capitalizing on its established market presence. The acquisition offers a pathway for Skechers to strengthen its supply chain resilience and invest in innovation, critical factors in a sector where consumer preferences shift rapidly. As the company transitions to private ownership, its ability to leverage 3G Capital’s expertise will be pivotal in sustaining growth and mitigating the external pressures of tariffs and economic uncertainty.
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