May 5 (UPI) — Footwear giant Skechers, the world’s third-largest footwear company, announced Monday it had reached a deal to be bought out by the private equity firm 3G Capital.
3G will acquire the southern California-based Skechers for $63 per share in cash which represents a 30% premium to the shoe company’s current public valuation. It was unanimously approved by Sketchers’ board of directors.
“With a proven track-record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital,” company chairman and CEO Robert Greenberg, 85, said Monday in a release.
Stock shares in Skechers — only third behind other bigger companies like Nike and Adidas — bounced Monday morning over 25% after the announcement.
Greenberg, its founder, has been Skechers’ chairman and CEO since 1992 when he stepped down from the same roles at L.A. Gear, Inc.
“Over the last three decades, Skechers has experienced tremendous growth,” he added, giving a nod to the New York-headquarted 3G Capital and its “remarkable” history of “success” with other iconic global brands like Heinz in a $28 billion deal with Warren Buffett‘s Berkshire Hathaway, Popeye’s Louisiana Kitchen, Firehouse Subs and a 2010 deal to grab Burger King in a $4 billion buyout.
“We believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the Company’s long-term growth,” stated Greenberg.
Meanwhile, Skechers singed onto a letter last week by the trade group Footwear Distributors and Retailers of America singed by 76 footwear brands, include Adidas and Nike, which requested exemptions from President Donald Trump‘s staggering international tariffs.
“We are thrilled to be partnering with Skechers and look forward to working with an entrepreneur of Robert’s caliber and the talented Skechers team,” wrote 3G Capital’s co-founder and co-managing partner, Alex Behring and Daniel Schwartz, co-managing partner.
However, a source told CNBC that Trump’s growing trade war did not force Greenberg’s Skechers into a deal which 3G Capital has had its eye on for several years with 3G company officials looking at a long-term outlook with Skechers well positioned for future growth.
Behring and Schwartz called Skechers an “iconic, founder-led brand” with a track record of “creativity and innovation,” saying the 3G team is “built to partner” with companies like Sketchers.
“We have immense admiration for the business that this team has built, and look forward to supporting the company’s next chapter.”