MarketVolatility

Skechers Sold for $9 Billion to 3G Capital Amid Global Trade Tensions

 In a significant move that shakes up the footwear industry, Skechers USA Inc., the global shoemaker, has agreed to be acquired by private equity firm 3G Capital for $9 billion, marking the end of its run as a publicly traded company. The deal, announced on May 5, 2025, comes at a time of economic uncertainty as the U.S.-China trade tensions continue to impact global businesses, particularly those in the manufacturing and retail sectors.

A Deal That Shakes the Footwear Industry

The acquisition, which values Skechers at $63 per share, marks a 36% premium over the company’s stock price before the deal was announced. This strategic move has garnered attention from industry insiders, analysts, and investors alike, signaling a change in how major global brands are navigating an increasingly uncertain global trade environment.
3G Capital, which is known for its aggressive investment strategies in large corporations, will now take Skechers private. The transaction is anticipated to be finalized in the latter half of 2025, subject to regulatory approval.
This acquisition comes as Skechers has been facing significant pressure due to rising tariffs on Chinese-made goods and challenges with global supply chains disrupted by the ongoing trade war.

Skechers’ Decision to Go Private Amid Trade War Pressures

For Skechers, the decision to sell itself and transition into private ownership reflects a broader trend among publicly traded companies seeking greater flexibility in times of geopolitical instability. With the trade war between the U.S. and China threatening margins, Skechers, like many other manufacturers, has been forced to confront the increasing costs of doing business internationally.
According to analysts, the trade war and its aftermath have contributed to rising tariffs on footwear imports from China, a key production hub for Skechers. In addition to these trade uncertainties, Skechers has faced disruptions in its global supply chain, particularly with transportation bottlenecks, increased raw material costs, and labor shortages in critical markets.
Moreover, Skechers has significant exposure to international markets. About 60% of its revenue comes from outside the United States, including key regions like Europe, Asia, and Latin America, where trade policies and local regulations are becoming increasingly unpredictable.

3G Capital’s Strategic Move

3G Capital’s purchase of Skechers highlights its expanding focus on the footwear and apparel market. 3G Capital, which has a reputation for buying undervalued companies, cutting costs, and restructuring operations, has made similar acquisitions in the past, including its buyouts of Burger King and Kraft Heinz.
As a private company, Skechers will likely benefit from 3G Capital’s expertise in operational efficiencies, which could help the company navigate the pressures of an increasingly competitive retail environment. Analysts believe that this private ownership will provide Skechers with more flexibility to invest in growth areas like e-commerce and international expansion without the constant scrutiny of public markets.

Stock Market Reaction and Investor Sentiment

Following the announcement of the acquisition, Skechers’ stock surged by more than 30%, reflecting investor approval of the deal and its favorable terms. Market analysts have noted that this acquisition could set a precedent for other global brands that are looking to go private amid ongoing trade disruptions and market volatility.
“This move signals a growing trend of companies opting for private ownership to avoid the volatility of public markets, especially when faced with such global risks,” said Daniel Clark, an analyst at Global Equities Research. “Skechers has made a strategic decision to focus on long-term growth rather than quarterly earnings pressure, which could prove invaluable in navigating the complexities of global trade.”

What This Means for Skechers and Its Employees

For Skechers, this acquisition marks a new chapter in its history. As a private company, it will no longer be subject to the same level of public disclosure, which could allow the company to make bold, long-term investments without immediate concerns over investor sentiment.
Employees at Skechers, many of whom are based in the U.S., might also see benefits in the form of more stability as the company restructures its operations under 3G Capital’s ownership. However, it remains to be seen whether the aggressive cost-cutting measures typically associated with 3G Capital will impact the workforce or the company’s global production strategies.

Conclusion: A New Era for Skechers

Skechers’ decision to sell for $9 billion and go private is a strategic response to the complexities of the ongoing U.S.-China trade war and the volatile economic environment. While the trade war has created challenges for many businesses, Skechers’ sale signals an opportunity for the company to retool its operations and chart a new path forward.
This development may also indicate a change in how major, well-established brands handle global risk in the face of rising trade tensions and ongoing supply chain challenges. Skechers’ shift to private ownership reflects a larger movement among companies aiming for greater stability and operational freedom, free from the pressures of public investors.
Now under the umbrella of 3G Capital’s expansive portfolio, Skechers could strengthen its position and enhance its ability to navigate today’s volatile global market landscape.

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