3G Capital to Take Skechers Private in $9.4B Deal

3G Capital has agreed to buy Skechers USA Inc. (NYSE: SKX) for around $9.4 billion in a historic deal that highlights changing trends in international commerce and private equity.

The transaction, publicized on May 5, 2025, will transform Skechers from a publicly quoted company into a privately owned one, creating one of the largest buyouts in the shoe industry's history.

Deal Structure and Shareholder Options

3G Capital will pay $63.00 per share in cash, representing a 28% premium over Skechers' closing price of $49.37 on May 2, 2025, under the terms of the agreement. 

Shareholders have the option to receive either the full cash amount or $57.00 per share plus one unlisted, non-transferable equity unit in a newly formed, privately held parent company that will own Skechers post-transaction. 

This mixed consideration option is capped at 20% of the outstanding shares, with proration applied if elections exceed this threshold.

The transaction has been unanimously approved by Skechers' board of directors and is expected to close in the third quarter of 2025, subject to customary closing conditions and regulatory approvals.

Financial Performance and Global Footprint

Skechers, headquartered in Manhattan Beach, California, is the third-largest footwear brand globally. The company reported record revenues of $8.97 billion and net earnings of $640 million in 2024. 

Approximately 43% of sales were direct-to-consumer, and the company operated over 5,300 stores across 180 countries. 

Key Financial Metrics (2024):

Strategic Rationale for the Acquisition

3G Capital's takeover of Skechers is in line with its tradition of investing in consumer-oriented brands such as Burger King, Tim Hortons, and Kraft Heinz. 

The company is drawn to Skechers due to the footwear firm's steady growth, international presence, and robust supply chain.

Skechers' diversified production platform and foreign revenue bases make it well-suited to managing trade uncertainties. Although only 40% of its products are produced in China, about one-third of its revenues are U.S.-based, leaving it room to maneuver in case of trade tensions.

Strategic Fit Snapshot

1. Brand Strength and Market Position

Skechers ranks as the world’s third-largest athletic footwear brand, offering a product portfolio that spans lifestyle and performance footwear. Its popularity transcends age and lifestyles, ranging from children to working adults and the elderly.

Success for the brand is founded on strategic celebrity partnerships, ongoing product innovation, including its GOwalk and Max Cushioning product lines, and a price positioning that is both aspirational and affordable.

For 3G Capital, this diversified brand appeal presents a special opportunity to grow more while remaining market-relevant across premium and value-oriented segments.

2. Global Diversification and Supply Chain Resilience

With 67% of its sales generated from overseas markets, Skechers has a well-diversified geographic presence. It has experienced significant growth in emerging economies such as India and Brazil, and continues to grow in China.

Concurrently, Skechers has just 40% of its production in China while the rest is diversified across Vietnam, Cambodia, and India. This diversified approach to sourcing helps the company from geopolitical risks, tariff volatility, and supply chain disruption.

Moreover, with a third of its revenues coming from the U.S., Skechers enjoys a strong home-based foundation while still being positioned to leverage international growth.

3. Growth of Direct-to-Consumer (DTC) Channels

Skechers has picked up the pace on its transition to direct-to-consumer sales. To date, in 2024, DTC represents 43% of its worldwide revenue, versus below 30% a half-decade ago. This includes both e-commerce and over 5,300 branded retail stores, many of which are company-owned.

For 3G Capital, DTC represents a high-margin, data-rich channel that offers superior customer engagement and control over pricing, inventory, and brand narrative. Optimizing this channel could be key to margin expansion and long-term brand value.

4. Operational Efficiency Potential

3G Capital is known for instilling operational discipline and deploying zero-based budgeting to drive leaner, more efficient business models. 

While Skechers already operates highly automated distribution centers and a robust global logistics platform, there remains untapped potential to improve margins further through supply chain integration, contract renegotiation, and inventory optimization.

With Skechers attaining a gross margin of 50.2% in 2024, incremental efficiency improvement could itself amount to meaningful EBITDA enhancement in 3G's hands.

5. Experienced, Aligned Leadership

The ongoing presence of Skechers founder Robert Greenberg and his son Michael Greenberg adds a layer of strategic richness.

Their long-decade leadership established a culture for innovation and the long-term outlook. 60% voting ownership by the Greenberg family maintained steady execution from short-term pressure by shareholders.

Perhaps, most importantly, their determination to succeed at preserving an interest within the post-combination entity shows alignment with 3G Capital's long-term agenda and reduces transition risk during the integration process.

6. Consistent Earnings and Industry Resilience

In 2024, Skechers reported $640 million in net income on revenues of $8.97 billion, representing a 7.1% net profit margin. Skechers has been on a consistent growth path, with a 5-year CAGR of approximately 9.5%.

In the face of changing consumer tastes towards comfort and lifestyle-oriented fashion, Skechers' athleisure positioning offers stability and scope for expansion.

The footwear segment, particularly athletic and casual wear, continues to outperform broader retail trends, making Skechers a structurally advantaged investment in an active consumer environment.

Leadership Continuity and Operational Stability

Post-acquisition, Skechers will continue to be led by its existing executive team, including Chairman and CEO Robert Greenberg, President Michael Greenberg, and COO David Weinberg. 

The company's headquarters will remain in Manhattan Beach, California. The Greenberg family, which controls about 60% of the company's voting rights, has agreed to the deal, attracted by a stake in the new privately held company. 

Market Response and Industry Consequences

After the announcement, shares of Skechers jumped about 25%, finishing at $61.36 on May 6, 2025. Despite the surge, the stock is still below its 52-week high of $78.85 in January 2025.

Skechers Stock Performance:

The purchase is part of a broad trend in which private equity groups have been pursuing solid, family-owned businesses with upside potential. Skechers' impressive financials and seasoned management team make it a compelling investment opportunity for 3G Capital.

Conclusion

3G Capital's $9.4 billion acquisition of Skechers represents a strategic move to capitalize on the footwear company's global presence, strong financial performance, and resilient supply chain. 

The deal underscores the attractiveness of stable, family-controlled businesses in the current economic climate and highlights the potential for private equity firms to drive growth in established consumer brands.

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