Skechers Goes Private: A $9.4B Bet on Footwear’s Future Amid Tariff Headwinds
7min read The acquisition of Skechers U.S.A., Inc. by 3G Capital, backed by $5 billion in jpmorgan debt financing, marks a bold move to navigate macroeconomic uncertainty. Announced in May 2025, the $9.42 billion take-private transaction reflects both confidence in Skechers’ long-term brand strength and a calculated bet on global footwear demand. But will this strategic pivot pay off?
The Deal’s Structure: A Premium Price with Strings Attached
At $63 per share in cash—30% above Skechers’ 15-day trading average—the offer rewards shareholders while maintaining operational continuity. Shareholders may elect an alternative “mixed consideration” of $57 cash plus non-transferable equity units in a new private holding company, but this option is restricted to 20% of shares. The structure ensures 3G Capital retains majority control, with the Greenberg family (current leaders) maintaining their roles.
Crucially, JPMorgan’s $5 billion debt facility underscores the transaction’s financial heft. shows a 25% surge post-announcement, erasing much of its earlier 30% YTD decline—a market nod to the premium’s appeal.
Why Now? Trade Wars and Operational Leverage
Skechers’ withdrawal of 2025 financial guidance in April highlighted risks from U.S. tariffs on Chinese imports, now at a punitive 145%. Two-thirds of Skechers’ business is international, making it vulnerable to trade friction. Yet 3G Capital, which famously revitalized Heinz and Burger King, sees opportunity in Skechers’ fundamentals: $9 billion in annual revenue, 5,300 global stores, and a loyal customer base.
The deal leverages 3G’s “owner-operator” model—streamlining costs without compromising growth. Skechers’ focus on comfort technology and direct-to-consumer expansion aligns with 3G’s track record of enhancing operational efficiency in consumer brands.
Risks Loom Larger Than Ever
The transaction’s success hinges on overcoming three critical hurdles:
1. Tariff Mitigation: Skechers’ reliance on Chinese manufacturing means tariff costs could squeeze margins unless pricing power or supplier diversification offsets the hit.
2. Regulatory Delays: While 60% of shareholders have already approved the deal, antitrust scrutiny could prolong uncertainty.
3. Private Market Constraints: Exiting public markets removes Skechers’ ability to tap equity markets for growth capital, a risk if trade tensions persist.
Investment Implications: A Trade or a Hold?
For institutional investors, the cash premium provides an exit at a 30% premium—a rare win in today’s volatile markets. However, the mixed consideration’s equity component lacks liquidity, making it less attractive for many shareholders.
Longer-term, the deal’s success will depend on whether 3G can navigate trade barriers while scaling Skechers’ global footprint. The footwear industry’s growth trajectory—projected to hit $550 billion by 2030—supports optimism, but execution remains key.
Conclusion: A Necessary Gamble
The Skechers acquisition is a strategic masterstroke for 3G Capital, combining a discounted equity price with JPMorgan’s financial firepower. With a 30% premium validating Skechers’ brand equity and a $5 billion debt facility underpinning its liquidity, the deal positions the company to weather near-term trade headwinds.
Yet risks remain. If tariffs persist, Skechers’ ability to pass costs to consumers—or restructure its supply chain—will determine profitability. For now, the market’s 25% stock surge suggests investors are willing to bet on 3G’s operational prowess. This is a deal that could redefine Skechers’ trajectory—or become a cautionary tale of over-leverage in uncertain times. Either way, it’s a move that reshapes the footwear industry’s playbook.
In a sector where comfort and innovation rule, Skechers’ private reinvention could be just what the doctor ordered—provided the trade war doesn’t keep it on its toes.
