New York-based 3G said in a statement that it would pay $63 per share in cash for Skechers, a 30 percent premium to the company's 15-day volume-weighted average share price.
Going private would help Skechers weather Trump’s trade war without the pressure of public markets. Skechers will remain led by CEO Robert Greenberg, but without the reporting requirements of a public company, it will be able to take steps to shield the world’s third-largest athletic shoe retailer from the public eye. Greenberg owns $1.1 billion in shares.
According to Bloomberg Intelligence analyst Abigail Gilmartin, the deal “should allow the company to achieve greater growth without the scrutiny of investors, especially amid growing macroeconomic uncertainty due to trade tensions.”
The deal, which is expected to close in the third quarter, also has a proprietary structure. In addition to the $63 per share, investors are also being offered a cash payment of $57 per share and one non-transferable share in the newly formed parent company Skechers, according to the statement. 3G is expected to own 80% of the outstanding shares upon closing.
“Skechers is an iconic, founder-led brand with a track record of creativity and innovation. We are immensely excited about the business this team has built and look forward to supporting the company's next chapter,” 3G said in a statement.
3G, a Brazilian-based private equity firm based in New York, has a reputation for doing a few big deals and managing its business for the long term.
The Skechers acquisition was 3G's first major deal since late 2021, when the company agreed to acquire 75% of window covering company Hunter Douglas.
Source: Bloomberg
