Skechers Deal Is Biggest-Ever Footwear Buyout

Skechers is set to be acquired by investment 3G Capital for around $9 billion and will become a private company. The board backed the deal unanimously, according to both firms. The $63-per-share offer is a 30% premium over the company's 15-day volume-weighted average stock price. After the transaction closes—which is expected in the third quarter—Skechers will continue to operate under current Chairman and CEO Robert Greenberg and keep its management team, the AP reports. This is the biggest-ever buyout in the footwear industry, reports Reuters.

Skechers has grown into a major multinational brand since it was founded by Greenberg in California more than 30 years ago. The deal comes at a tough time for the retail industry and footwear in particular because of falling consumer spending and overseas supply chains affected by the trade war, CNBC reports. Most of Skechers' imports to the US come from China. Some analysts called the move surprising, but insiders tell CNBC that 3G has been eyeing the acquisition for years and Skechers wasn't forced into the deal by the current environment.

Greenberg, 85, "never ran Skechers like a typical public company," the Wall Street Journal reports. He avoided quarterly earnings calls and installed his son, Michael Greenberg, as the No. 2 chief executive. Greenberg stands to collect a payout of more than $1 billion from the buyout and he will retain a stake in the private company, the Journal reports. (This content was created with the help of AI. Read our AI policy.)