Skechers to go private in $9 billion deal with 3G Capital amid tariff turmoil
Athletic footwear giant Skechers strikes a mega buyout deal as U.S.-China trade tensions threaten global production pipelines.
ADVERTISEMENT
Skechers, the globally recognized footwear brand, is being taken private in a $9 billion acquisition by investment firm 3G Capital, the Associated Press reported.
The all-cash deal, pegged at $63 per share, marks a 30% premium over the company’s 15-day volume-weighted average stock price and was unanimously approved by the Skechers board. Following the announcement, shares surged nearly 25% to $61.56.
Also Read: Hollywood hit hard: US media stocks slide as Trump slaps 100% tariff on foreign-made films
The buyout comes at a time of growing uncertainty for consumer goods companies with overseas manufacturing hubs, particularly in Asia, as U.S. President Donald Trump escalates tariffs on Chinese imports.
With a massive share of its production based in Asia, Skechers is directly exposed to the effects of these protectionist trade moves. About 15% of Skechers' revenue originates from China alone, and roughly two-thirds of its total business is international, the report added.
Though the official deal announcement steered clear of discussing tariffs, recent comments from company executives reveal internal strategies to mitigate rising costs—from shifting sourcing strategies to recalibrating prices.
The company’s CFO had recently noted the challenges of planning in a climate where tariff rates from China to the U.S. had soared to nearly 160%, rendering imports from China financially unviable.
With over 5,300 retail locations globally—1,800 of them company-owned—Skechers has grown into a global footwear powerhouse, reporting record revenues of $9 billion in 2024 and net earnings of $640 million. Its operations are expected to continue under current Chairman and CEO Robert Greenberg, with headquarters remaining in Manhattan Beach, California.
