Skechers is being sold for 9.4 billion USD - The company's decision comes due to high US tariffs
Skechers has agreed to be sold to 3G Capital for $9.42 billion in the largest athletic shoe industry acquisition to date, exiting the public markets after 26 years. The deal comes as the iconic brand grapples with the impact of high U.S. tariffs. China accounts for a large portion of imports for the brand's U.S. business.
Needham analyst Tom Nikic said the deal talks may have been accelerated by the volatile macro environment driven by tariffs, weakening consumer sentiment and troubled China-U.S. relations. The company may have wanted to weather these challenges without coming under scrutiny from Wall Street.
Skechers, Nike and Adidas America are among the companies that have asked Trump to exempt sneakers from the reciprocal tariffs, as American businesses face higher costs and shoppers tighten spending as they brace for a potential price hike.
Founded in 1992, California-based Skechers has become known for its comfort-focused sneakers. The company has faced stiff competition from brands like Nike and newer entrants like Hoka, thanks to its aggressive global expansion and focus on value. Its sneakers are priced between $75 and $150 on its website, and the company has nearly 5,000 retail stores in more than 120 countries.
Needham analyst Nikic said the deal was "very surprising" as Skechers has always been seen as a "family business," with the founding Greenberg family heavily involved in operations.
Buyout firm 3G Capital, controlled by billionaire Brazilian financier Jorge Paulo Lemann, is best known for its investments in the food and beverage sector through companies such as Kraft Heinz. The Skechers deal is expected to close in the third quarter of 2025 and will be financed through a combination of cash provided by 3G Capital and debt financing from JPMorgan Chase Bank.
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