Breaking Down 3G’s $9B Deal to Buy Skechers

The $9.4 billion acquisition of Skechers by 3G Capital—among the largest go-private transactions in the footwear industry—marks a bold bet on the athletic apparel giant’s global growth potential. The deal, which values Skechers at $63 per share in cash, offers investors a chance to unpack a complex strategy merging private equity muscle with a family-led brand’s retail clout.

Deal Structure: A Premium Payday for Shareholders
3G’s offer represents a 30% premium over Skechers’ 15-day volume-weighted average stock price (VWAP), a clear signal of confidence in the company’s long-term value. The $9.4 billion price tag—calculated using 151.495 million diluted shares outstanding—gives shareholders either $63 in cash or an alternative option of $57 in cash plus a non-transferable equity unit in the new parent company. The all-cash portion of the deal, backed by JPMorgan’s debt financing, underscores 3G’s financial firepower.

Market reaction was swift: shares surged 24–25% on the news, closing near $62, reflecting investor relief over the premium and the removal of public market volatility.

Strategic Rationale: Why 3G Went for Skechers
3G, known for transforming brands like Burger King and Heineken through operational efficiency, sees Skechers as a prime candidate for its “cost optimization” playbook. Skechers’ 2024 revenue hit $9 billion, with Q1 2025 sales up 7% year-over-year to $2.41 billion—a testament to its global reach. Two-thirds of revenue comes from outside the U.S., mitigating direct exposure to trade tensions. Even its 15% China-linked revenue—a potential tariff hot spot—is tempered by the company’s diversification efforts.

“Skechers’ value proposition is clear: it’s a global player with pricing power and celebrity partnerships,” said one analyst. Its $75–$150 price points undercut luxury brands while offering aspirational appeal, a formula that has driven expansion in markets like China, Europe, and Latin America.

Risks Ahead: Tariffs and Supply Chain Hurdles
The deal isn’t without red flags. U.S. tariffs on Chinese imports—some as high as 125%—threaten margins, though Skechers’ geographic diversification provides a buffer. Management has emphasized reducing reliance on “high-cost locations” for U.S. sourcing, but Asian supply chains remain critical.

Meanwhile, the withdrawal of Skechers’ 2025 financial outlook due to macroeconomic uncertainty highlights the risks of geopolitical instability. “This isn’t just about tariffs,” said a footwear analyst. “It’s about whether consumers will keep buying mid-tier athletic wear in a slowing global economy.”

Operational Continuity: A Test of 3G’s Hands-Off Approach
Crucially, Skechers’ leadership—led by Chairman Robert Greenberg and CEO Michael Greenberg—will remain in place post-acquisition. This contrasts with 3G’s typical hands-on approach, suggesting a recognition of Skechers’ founder-driven culture.

“The Greenbergs built this company,” said one insider. “3G knows they need to let them run it.” For now, no layoffs or major restructurings are planned, a strategy aimed at maintaining morale and brand consistency.

Conclusion: A High-Reward, High-Risk Gamble
3G’s Skechers bet hinges on two key factors: its ability to wring cost savings without alienating the brand’s loyal customer base, and Skechers’ resilience in volatile markets. With $9.5 billion in revenue and a 7% Q1 sales growth, the company shows it can thrive even amid uncertainty.

The $9.4 billion price tag reflects a premium for stability in an unstable world—a bet that Skechers’ global footprint and operational agility will outweigh tariff risks. For investors, the deal’s success may ultimately depend on whether 3G can balance its cost-cutting ethos with the creativity that made Skechers a household name.

As the footwear sector braces for more turbulence, this acquisition is less about today’s challenges and more about owning a piece of tomorrow’s sneaker market. With 3G’s balance sheet and Skechers’ brand momentum, the partnership could redefine what it means to stay ahead in a $300 billion industry.