Skechers, the renowned footwear giant, is set to be acquired by 3G Capital in a take-private deal that promises to reshape its future. In Skechers’s case, 3G Capital is already the largest private equity buyout in history with $63 per share cash. This agreement constitutes an impressive 30% premium above Skechers’ market value. This new play is the latest development in 3G Capital’s long game to focus their investment on growth-focused consumer brands.
Skechers is growing its retail presence, including the company’s largest new footprint in Austin, TX located in Barton Creek Square Mall. This acquisition looks like a hand-in-glove fit with their stated growth strategy. On July 16, 2024 a passerby snapped a picture of the completed storefront. This photograph conspicuously calls out the brand’s colorful footprint within its competitive set on retail shelves.
Robert Greenberg, CEO of Skechers, will continue to head the company after the acquisition closes. Throughout his tenure, he has given great confidence as to this ongoing relationship with 3G Capital. Greenberg stated, “With a proven track record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital.”
Under Greenberg’s leadership, Skechers has focused on a sharper strategy to build up its brand and improve its product mix. He emphasized the positive impact he anticipates as Skechers collaborates with 3G Capital, stating, “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.”
This acquisition further illustrates 3G Capital’s strategy of investing in strong brands with growth opportunities. The private investment firm’s bid to take Skechers private. This strategic move will provide the company with increased flexibility to innovate and accelerate its expansion into adjacent markets, without the burden of public market pressures.
As the deal unfolds, Skechers is excited to start realizing the potential with this new relationship. Their vision is to streamline their processes and accelerate their expansion in the fast-paced footwear market. It’s clear that the company’s strong reputation and existing retail presence has them well positioned for continued success.