BY Fraser Tennant
In the footwear industry’s biggest buyout to date, shoe brand company Skechers is to be acquired by global investment firm 3G Capital in a transaction valued at $9.42bn.
Under the terms of the definitive merger agreement, 3G Capital has agreed to pay $63 per share in cash for all outstanding shares of Skechers. The transaction will be financed through a combination of cash provided by 3G Capital as well as debt financing.
Upon completion of the transaction, Skechers’ common stock will no longer be listed on the New York Stock Exchange, and Skechers will become a private company.
“Over the last three decades, Skechers has experienced tremendous growth,” said Robert Greenberg, chairman and chief executive of Skechers. “Our success has been due to our commitment to excellence and innovation across the entire Skechers organisation, in-demand comfort-focused product offering and loyal partners.”
One of the largest founder-led consumer product companies in the world with $9bn in annual sales, Skechers’ significant growth over the past 30 years has been driven by a relentless focus on delivering style, comfort, quality and innovation at an affordable price.
“With a proven track-record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital,” continued Mr Greenberg. “Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will meet the needs of our consumers and customers while enabling the company’s long-term growth.”
The deal represents a transformational long-term partnership opportunity for Skechers to further evolve as a global leader in both lifestyle and performance footwear. The company’s senior management team will lead that transition alongside 3G Capital, one of the foremost growth-focused investors in the world.
“We are thrilled to be partnering with Skechers and look forward to working with an entrepreneur of Robert’s calibre and the talented Skechers team,” said Alex Behring, co-founder and co-managing partner, and Daniel Schwartz, co-managing partner, of 3G Capital. “Skechers is an iconic, founder-led brand with a track record of creativity and innovation.”
Following the completion of the transaction – which has been unanimously approved by the Skechers board of directors – Skechers will continue to execute its ongoing strategic initiatives including designing award-winning and innovative product, international development, direct-to-consumer expansion, domestic wholesale growth, and strategic investments in global distribution, infrastructure and technology.
Mr Behring and Mr Schwartz concluded: “We have immense admiration for the business that the Skecher’s team has built, and look forward to supporting the company’s next chapter.”
News: Skechers to go private for $9.42 billion in biggest sneaker industry deal