Skechers, which is widely known as one of the top 3 largest footwear companies around the globe, recently announced that global investment firm 3G Capital is going to acquire it. Both companies are soon going to enter into a merger agreement, while the CEO of Skechers, Robert Greenberg, will retain his position. The stock prices of Skechers witnessed a significant increase of 25% after the news of the acquisition was made public. If you are someone who wants to know more about 3G Capital buying Skechers, this article is for you. It brings you everything you need to know about the deal and how 3G Capital is going to pay Sketchers for its shares.
What Did Robert Greenberg Say About The Acquisition?
In his statement, while addressing the acquisition, Robert Greenberg, the CEO of Skechers, mentioned how the company is going to enter the next chapter with this partnership. He further mentioned how 3G Capital has an impressive history of facilitating the journeys of success for various global consumer businesses. Greenberg stated that Skechers believes this partnership with 3G Capital is going to support their talented team and use their expertise in meeting the needs of the customers. It also thinks this partnership will facilitate the long-term growth of Skechers.
What Did Alex Behring Say About The Acquisition?
In his statement, Alex Behring, Co-founder of 3G Capital, expressed how thrilled the investment company is to be partnering with Skechers. He further added that the company is looking forward to working with Robert and the Skechers team. Alex called Skechers a founder-led brand that has a stunning track record of creativity and innovation. 3G Capital has a deep admiration for the way Skechers’ team has built up its business. He mentioned that 3G Capital is looking forward to supporting Skechers in its next chapter. Alex also claimed that 3G Capital’s team is built to partner with companies like Skechers.
How Is 3G Capital Going To Pay Skechers And Its Shareholders?
According to the terms of the definitive merger agreement the two companies have entered into, 3G Capital is all set to pay $63.00 per share cash for all the outstanding shares of Skechers. This is a representation of a premium of 30% to the 15-day volume-weighted average stock price of Skechers. According to what the agreement states, the existing shareholders of Skechers can opt to receive $57.00 in cash. The shareholders are also going to get one unlisted, non-transferable equity unit in the newly established and privately held company. This newly established company will be known as the parent company of Skechers. The shareholders are also advised to go through the election mechanics of the transaction and make an informed decision.
Skechers’ Economic Struggles Before The Acquisition
The past few months have definitely been a bit too difficult for the global economy, especially the retail industry. President Trump’s tariff policy and the growing fear of trade war, along with the rapidly growing uncertainty regarding an upcoming global recession, have resulted in significant damage to the entire retail industry. Just last week, the company wrote a letter to the Footwear Distributors and Retailers of America trade group requesting exemptions from Trump’s tariffs. Skechers did not really specifically say how much of its supply chain is based in China, which is currently facing 145% tariffs. The company also decided to withdraw its full-year 2025 guidance because of the increasing uncertainty in the global markets.
Is the Skecher Acquisition Deal A Result Of Economic Uncertainties?
According to what a closely related source said about the acquisition deal, it does not seem like a result of the economic uncertainties the global markets are currently facing. 3G Capital was reportedly interested in acquiring Skechers years before the Trump tariffs hit the markets. The Trump tariffs may affect the short-term economic growth of Skechers. However, 3G Capital is pretty confident that Skechers is going to witness significant growth in the long term.
