In Surprise Move, Skechers To Go Private in $9.54 Billion Deal With 3G Capital
In a surprise move, Skechers U.S.A. has agreed to be acquired by global investment firm 3G Capital.
Under the terms of the definitive merger agreement, 3G Capital has agreed to pay $63.00 per share in cash for all outstanding shares of Skechers, representing a premium of 30 percent to Skechers’ 15-day volume-weighted average stock price.
At the end of the first quarter, Skechers had 151,495,000 diluted shares outstanding. At $63 a share, that would make the deal valued at $9.54 billion.
The transaction includes the option for existing shareholders of Skechers to instead receive $57.00 in cash and one unlisted, non-transferable equity unit in a newly-formed company following the closing of the transaction, will be the parent company of Skechers. Upon completion of the transaction, the company’s common stock will no longer be listed on the New York Stock Exchange, and Skechers will become a private company.
Skechers noted that this transaction, which was unanimously approved by its board of directors, including an independent committee of independent directors, is a “transformational long-term partnership opportunity” for the shoe company to “further evolve” in both lifestyle and performance footwear.
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The company said that its senior management team will lead that transition alongside 3G Capital. Further, the company will continue to be led by chairman and chief executive officer Robert Greenberg, president Michael Greenberg, and the rest of the current management team. It will remain headquartered in its hometown of Manhattan Beach, Calif. where it was founded over 30 years ago.
Upon completion of the transaction, the company’s common stock will no longer be listed on the New York Stock Exchange, and Skechers will become a private company.
Robert Greenberg said in a statement that this move comes as Skechers has “experienced tremendous growth” over the last three decades.
“With a proven track-record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital,” the CEO said. “Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe 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.”
Alex Behring, co-founder and co-managing partner, and Daniel Schwartz, co-managing partner, of 3G Capital, added in a joint statement that they are “looking forward to working with the Skechers team.
“We have immense admiration for the business that this team has built, and look forward to supporting the company’s next chapter,” Behring and Schwartz said. “Our team at 3G Capital is built to partner with companies like Skechers.”
This comes as the footwear company reported net sales in the first quarter of fiscal 2025 of $2.41 billion, a 7.1 percent increase from $2.25 billion the same time last year.
But while sales were high, net earnings dipped in Q1 to $202.4 million and diluted earnings per share were $1.34, a 2.0 percent decline compared with prior year net earnings of $206.6 million and diluted earnings per share of $1.33 in Q1 2024.
