Skechers to go private following $9.4B deal with 3G Capital

Core Viewpoint - 3G Capital has reached a multibillion-dollar agreement to acquire Skechers and take the company private, with unanimous approval from Skechers' board [1][2]. Deal Details - 3G Capital will purchase outstanding Skechers shares for $63 each, with an option for existing shareholders to receive $57 in cash and one unlisted, non-transferable equity unit in a newly-formed parent company [2]. - The total value of the deal is approximately $9.4 billion [2]. - The transaction is expected to be completed in the third quarter, pending customary closing conditions and regulatory approvals [4]. Company Transition - Skechers will cease trading on the New York Stock Exchange after the transaction, ending its nearly 26-year run as a publicly traded company [5]. - CEO Robert Greenberg expressed optimism about the partnership with 3G Capital, highlighting their history of supporting global consumer businesses [5]. Management and Strategy - The current management team, including Robert and Michael Greenberg, will remain in charge post-transaction [6]. - Skechers plans to continue its strategic initiatives, focusing on product innovation, international development, direct-to-consumer expansion, and investments in distribution and technology [6]. Financial Performance - In the first quarter, Skechers reported sales of $2.41 billion and net earnings of $202.4 million [8]. - The company rescinded its annual guidance for 2025 due to macroeconomic uncertainties related to global trade policies [8]. Market Position - Skechers, co-founded by Robert and Michael Greenberg in 1992, claims to be the third-largest footwear company globally, selling 297 million units last year [9]. - The company's market capitalization was approximately $9.19 billion at the time of the announcement regarding the acquisition [9].