Newscasts - Skechers to go private for $9.42 bln in biggest sneaker industry deal

Skechers USA

07/05/2025 04:03

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Source: 'Reuters - Business videos'

Description: Skechers has agreed to be taken private by 3G Capital for $9.42 billion in the footwear industry's biggest buyout to date, exiting public markets after 26 years as the popular shoe brand grapples with the impact of steep U.S. tariffs. Julian Satterthwaite reports.

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Video Transcript:

Skechers is to go private. The sneaker brand has agreed to be taken over by investment firm 3G Capital in a deal valued at $9.42 billion. That marks the biggest-ever buyout for the footwear industry. The move will see Skechers shares stop trading after 26 years on public markets. Its stock jumped 25% on the news but is still down on the year. The company last month withdrew its financial forecasts, warning that it faced a big hit from Donald Trump's 145% tariff on imports from China. That country accounts for the bulk of its shipments to the US. One analyst told Reuters the new deal may have been accelerated by the volatile trading environment, with Skechers possibly keen to navigate the turmoil away from Wall Street scrutiny. The company has joined rivals Nike and Adidas in urging Trump to exempt shoes from tariffs, saying the levies will just hurt shoppers. Skechers was founded in California in 1992 and has come to be known for its comfort-focused shoes. It has held up against Nike and new rivals like HOKA thanks to aggressive global expansion and value-led pricing. It has also done prominent marketing tie-ups with celebrities including Britney Spears and Kim Kardashian. 3G Capital is controlled by Brazilian billionaire Jorge Paulo Lemann, and is best known for investing in food firms like Kraft Heinz.