Global footwear giant Skechers announced on May 5, 2025 that it has reached an agreement to be acquired by Brazilian private equity firm 3G Capital for approximately US$9 billion.

Under the terms of the deal, 3G Capital will pay US$63 per share, a 27.6% premium over Skechers’ closing price on May 2, 2025.

Shareholders may choose to receive US$57 per share in cash and roll over the remaining value into the new privately held company.

3G Capital has previously acquired major consumer brands, such as Burger King and Kraft Heinz.

🔗 Source: Axios

🧠 Food for thought

1️⃣ Tariff vulnerability creates unique acquisition timing for footwear industry

Skechers’ acquisition comes at a critical moment when the footwear industry faces exceptional tariff pressures that could reshape the entire sector.

The company imports 100% of its U.S.-sold shoes with approximately 40% from China and 40% from Vietnam, making it particularly vulnerable to proposed tariff increases 1.

Industry analysts estimate that new tariffs could increase footwear costs dramatically, with projections suggesting price increases of up to 56% on a $100 sneaker when sourced from heavily targeted countries 2.

This timing is significant as over 80 major footwear brands including Nike and Adidas recently sent a collective letter to President Trump specifically requesting footwear exemptions, highlighting the industry’s vulnerability 3.

By going private under 3G Capital’s ownership, Skechers gains flexibility to navigate these trade challenges without the quarterly pressures of public markets, potentially giving it an advantage over competitors still answering to public shareholders.

2️⃣ 3G Capital’s acquisition reflects confidence in global footwear despite tariff threats

Despite withdrawing its annual guidance due to tariff uncertainties, Skechers’ $9.4 billion valuation represents a significant 30% premium over its recent stock price, indicating strong confidence in its long-term prospects 4, 5.

With two-thirds of Skechers’ business already outside the United States, the company has substantial geographic diversification that could help insulate it from U.S.-specific tariff impacts 4.

The company’s position as the world’s third-largest footwear brand with over 5,300 global stores and $9 billion in annual revenue provides a substantial platform for 3G Capital to implement its operational efficiency playbook 5, 6, 7.