Brazilian private equity firm 3G Capital, which also owns Burger King, is buying Skechers for $9.4 billion: it’s the largest acquisition in history for a footwear brand and the second largest ever in fashion after Tiffany’s one to LVMH (2020). But it’s also one of the most unlikely, because it’s the debut of 3G Capital in the fashion industry, and for Skechers, the surprise comes from the fact that the family leading it had never hinted at a possible divestment.
The deal
3G Capital is headed by Brazilian billionaires Jorge Paulo Lemann, Carlos Alberto Sicupira, and Marcel Telles. After buying Burger King and Heinz, it is now quietly and unexpectedly buying Skechers as well. The $9.4 billion price paid is slightly more than Skechers’ record 2024 sales and is about 13 times its net profits in the same fiscal year. This fund will buy all outstanding shares of Skechers for $63, a 30% premium to the volume-weighted average price of Skechers shares over the past 15 days. The transaction is expected to be completed in the third quarter of 2025. Currently, Skechers’ market value is about $7.38 billion, down 30 % from its peak. Still leading the company will be founder and CEO Robert Greenberg (85) and his son, company president Michael Greenberg. The company will simultaneously delist.
The surprise
Tom Nikic of Needham & Co described the deal as “very surprising”. According to the analyst, the decision to sell “may have been accelerated by the macroeconomic environment”, referring to the trade war and consumer confidence. This way, Skechers will be able to face challenges without being subjected to Wall Street’s judgment, reports Footwear News. “This deal demonstrates the fact that footwear is an industry with greater resilience and often tends to weather crises in better conditions or recover more quickly”, Sonia Lapinsky of Alix Partners told Business of Fashion.
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