The Trump tariff impact has prompted its newest corporate casualty. Footwear behemoth Skechers has consented to be taken private in a $9.42 billion transaction by private equity company 3G Capital. The transaction is the largest buyout in footwear industry history and brings Skechers’ 26-year history as a publicly traded company to an end.
The move comes after a sharp drop in stock prices and increased pressure from President Donald Trump 145% import taxes on Chinese products. China as a large supplier put Skechers at direct trade risks, compelling it to re-strategize its future away from Wall Street watchfulness.
3G Capital Closes the Deal with Cash Bid
Skechers announced on Monday that 3G Capital will acquire the company for $63 per share in cash. That’s a 28% premium to Friday’s closing price. Skechers shares jumped 25% to $61.86 after the announcement, recovering somewhat from a 30% decline earlier this year.
Analysts note the buyout negotiations accelerated amid a volatile macro backdrop—characterized by tariff increases, faltering US consumer confidence, and strained US-China relations. The company in April pulled its annual guidance amid tariff-related uncertainty.
Skechers, together with competitors Nike and Adidas, had implored the Trump administration to grant an exemption from reciprocal tariffs for footwear. But the White House persisted, which meant greater costs of production. Customers then reduced consumption, anticipating higher retail costs.
Established in 1992, Skechers became popular with its comfort-oriented sneaker collection and celebrity endorsements with Britney Spears and Kim Kardashian. The company survived the competition by providing affordable rates and worldwide distribution—with 5,000 retail outlets in 120 countries.
A ‘Surprising’ Family Exit
Industry observers described the transaction as surprising. The Greenberg family has had a long connection with the brand. CEO and founder Robert Greenberg, aged 85, will remain at the helm. President Michael Greenberg and COO David Weinberg will continue to serve. Sources said Skechers did not undergo an auction process. The transaction was bilateral, based on the Greenbergs’ deep connection with 3G Capital.
3G, which is synonymous with cutting prices and rationalizing companies, has experience with Kraft Heinz and Anheuser-Busch. Experts think that the company could eventually take Skechers public again after boosting efficiency in operations.
The Skechers acquisition is scheduled to close in Q3 2025. 3G Capital will fund the acquisition with a combination of internal funds and debt financing secured by JPMorgan Chase. As Trump’s tariffs redefine global business models, Skechers’ action highlights a larger trend—firms might prefer private ownership to ride out geopolitical storms.
