Skechers to Go Private in $9.42B Buyout by 3G Capital Amid Tariff Pressures

Skechers is set to be acquired by 3G Capital for $9.42 billion in the largest-ever buyout in the footwear industry. The investment firm will pay $63 per share in cash, a 28% premium over Skechers’ last closing price. Shares surged 25% to $61.86 on the news, rebounding from a nearly 30% drop earlier this year after the company scrapped its earnings forecast due to a 145% U.S. import tariff on Chinese goods—where much of Skechers’ inventory originates.

Founded in 1992 and known for comfort-driven sneakers, Skechers has expanded to over 5,000 stores in 120+ countries and sells shoes priced between $75 and $150. Despite stiff competition from Nike, Adidas, and new brands like Hoka, Skechers has maintained market share through global growth and value positioning. High-profile endorsements from celebrities like Britney Spears and Kim Kardashian have also bolstered brand appeal.

Analysts see the privatization as a strategic move to shield the company from Wall Street pressure amid rising tariffs and strained China-U.S. trade relations. The deal, described as "surprising" due to Skechers’ long-held identity as a family-run business, was not part of a broader auction. 3G Capital has maintained a strong relationship with the Greenberg family, who will remain in key leadership roles, including CEO Robert Greenberg.

Known for turning around major brands like Kraft Heinz through cost efficiency, 3G may eventually take Skechers public again. The deal is expected to close in Q3 2025 and will be financed with a mix of 3G’s capital and debt from JPMorgan Chase.

This acquisition highlights shifting dynamics in the footwear industry as companies seek stability amid economic uncertainty and rising import costs.