Skechers to go private in $9.4-billion deal
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Skechers, the Manhattan Beach footwear brand, is going private in a $9.4-billion deal.
New York investment firm 3G Capital will acquire the company in a transaction that is expected to close in the third quarter, the company said Monday.
Manhattan Beach-based Skechers announced record sales in the first quarter of 2024, while other brands like Nike see weak earnings. Here’s why.
Skechers had a market value of about $7.4 billion before the deal was announced.
The $9.4-billion valuation reflects a price of $63 per share when accounting for Class A and Class B shares.
Shares of the company were up nearly 25% on Monday but had fallen 28% year to date through Friday’s close.
“Skechers is an iconic, founder-led brand with a track record of creativity and innovation. We have immense admiration for the business that this team has built, and look forward to supporting the Company’s next chapter,” 3G said in a statement.
The sale announcement follows a decision by Skechers to not offer full-year guidance in April, citing “macroeconomic uncertainty stemming from global trade policies.”
President Trump’s aggressive tariffs have impacted trade with major manufacturing hubs including Vietnam and China, where Skechers makes a large portion of its shoes. Trump placed a 145% tax on goods imported from China.
This is a developing story. Bloomberg contributed to this report.
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