Skechers — with more than 5,300 global shoe stores — goes private in $9.4 billion deal

Global footwear retailer Skechers, caught in the current tariff turmoil, agreed to be taken private by 3G Capital for roughly $9.4 billion.

The Manhattan Beach, California-based chain with 5,318 stores worldwide and known for its slip-on sneakers, said Monday it struck a deal to be acquired by 3G Capital, a global private equity firm. 3G's holdings include being a major shareholder in Toronto-based Restaurant Brands International, the parent of Burger King, Tim Hortons, Popeyes Louisiana Kitchen and Firehouse Subs.

3G Capital agreed to pay $63 per share in cash for Skechers, 30% more than the company's 15-day volume-weighted average stock price. The retailer will become a privately held company when the deal closes, probably in the third quarter. Skechers said its headquarters will remain in its hometown of Manhattan Beach, where it was founded over 30 years ago.

The shoe industry is among the consumer goods sellers being roiled by the Trump administration's new tariffs on imported goods. U.S. sellers of athletic and casual footwear, such as Skechers, source much of their merchandise from Asia, making them subject to the new fee hikes.

Last week, Skechers was one of over 70 companies that signed a letter from the Footwear Distributors and Retailers of America asking President Donald Trump to exempt shoes from reciprocal tariffs. The trade group said that children's shoes already have significant tariffs and that any new ones will be stacked on top of those. In the shoe industry, tariffs could hit more than 150% to nearly 220%.

"Many companies making affordable footwear for hardworking lower and middle-income families cannot absorb tariff rates this high, nor can they pass along these costs," the trade organization said. "Without immediate relief from the reciprocal tariffs they will simply shutter. ... In addition, these tariffs will not drive shoe manufacturing back to the U.S. It takes significant capital investment and years of planning to shift sourcing. The new tariffs in fact remove the business certainty that is needed to make these types of investments and erase almost all the necessary capital."

Skechers is the world's third-largest footwear company behind Nike and Adidas, with $9 billion in annual sales. The company designs, develops and markets lifestyle and performance footwear, apparel and accessories for men, women and children. Its collections are available in about 180 countries and territories through its brick-and-mortar locations, department and specialty stores, and its online site, Skechers.com.

Chairman and CEO Robert Greenberg, President Michael Greenberg and Chief Operating Officer David Weinberg will continue to lead the company. In its statement, Skechers said it and 3G Capital have a shared vision for the long-term future growth of the business.

"Over the last three decades, Skechers has experienced tremendous growth," Robert Greenberg said in a statement. "Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the company's long-term growth."

Alex Behring and Daniel Schwartz, 3G Capital co-managing partners, described Skechers as "an iconic, founder-led brand with a track record of creativity and innovation."

Following completion of the deal, Skechers said it will move ahead with its strategies of designing innovative products, international development, direct-to-consumer expansion and domestic wholesale growth, as well as investments in global distribution, infrastructure and technology.

The company this year launched a new store format, one that is immersive and experiential. In January, it debuted its first Skechers Performance store at West Edmonton Mall in Canada, with half-courts where consumers can try out footwear. The 7,500-square-foot-plus reimagined location features an expansive sales floor, the largest among Skechers' concept stores worldwide. Surrounded by digital LED screens, the store has half-size pickleball and basketball courts.

3G Capital "is very active in the consumer space" and has been on the lookout for deals, said Neil Saunders, a retail analyst and managing director at analytics firm GlobalData.

"Now is probably a good time for them to buy Skechers as the shares have been trading lower, partly thanks to concerns around tariffs," Saunders said in an email to CoStar News. "Although the business does face short-term disruption — as does every sneaker player — the longer-term trajectory remains positive and 3G will view Skechers as a growth prospect which allows them to more than recoup their return."

Skechers didn't respond to an email from CoStar News seeking a comment on Saunders' remarks.

When it reported its first-quarter earnings in April, Skechers declined to offer financial guidance "due to macroeconomic uncertainty stemming from global trade policies."

At the time, Skechers said it saw a chance for expansion in China.

"We believe Skechers has significant growth opportunities in China, and we will continue to invest in product, marketing and infrastructure to expand and support our presence," Weinberg said in a statement.

The Skechers sale will be financed through a combination of cash provided by 3G Capital and debt financing committed by JPMorgan Chase.

Greenhill, a Mizuho affiliate, acted as exclusive financial adviser, and Latham & Watkins acted as lead legal counsel to Skechers. J.P. Morgan Securities acted as the exclusive financial adviser. Paul, Weiss, Rifkind, Wharton & Garrison acted as lead legal counsel to 3G Capital, with Kirkland & Ellis serving as financing legal counsel.