Skechers to be acquired by 3G Capital in $9.4-billion deal
In a major development in the world of footwear, Skechers, the popular brand known for its comfortable and stylish shoes, has announced that it will be acquired by investment firm 3G Capital for a whopping $9.4 billion (approximately ₹80,000 crore). This deal marks one of the largest acquisitions in the consumer goods industry in recent times.
The acquisition was announced on Monday, with 3G Capital offering $63 per share, representing a premium of 30% to Skechers’ 15-day volume-weighted average stock price. The deal is expected to close in the second half of 2023, subject to regulatory approvals and other customary closing conditions.
After the acquisition, Skechers will continue to be led by its CEO Robert Greenberg and his team, ensuring a smooth transition and minimal disruption to the company’s operations. Greenberg has been at the helm of Skechers since its inception in 1992 and has been instrumental in the company’s growth and success.
Skechers has become a household name in the footwear industry, known for its wide range of products, including sneakers, boots, sandals, and more. The company has a strong presence globally, with operations in over 160 countries and a vast network of distributors and retailers.
The acquisition is seen as a strategic move by 3G Capital, which has a reputation for backing businesses with strong growth potential. The investment firm has a portfolio of companies across various industries, including consumer goods, food and beverages, and retail.
For Skechers, the acquisition provides an opportunity to scale its business and expand its global footprint. The company has been growing steadily over the years, with revenue increasing by over 10% in the past year alone. The acquisition is expected to provide Skechers with the resources and expertise needed to accelerate its growth and take on bigger challenges in the competitive footwear market.
The deal has been welcomed by investors, with Skechers’ stock price surging by over 20% on Monday following the announcement. Analysts believe that the acquisition will provide Skechers with the necessary firepower to take on its larger rivals, including Nike and Adidas.
In a statement, Robert Greenberg, CEO of Skechers, said, “We are thrilled to partner with 3G Capital, a world-class investor with a proven track record of supporting companies like ours. This partnership will provide us with the resources and expertise needed to accelerate our growth and take Skechers to the next level.”
The acquisition is the latest in a series of major deals in the consumer goods industry in recent times. In 2020, 3G Capital acquired a majority stake in Campbell Soup Company, while in 2019, it acquired a stake in Anheuser-Busch InBev.
The deal is expected to have significant implications for the footwear industry, with Skechers set to become one of the largest players in the market. The acquisition is also expected to create new opportunities for Skechers’ employees, customers, and suppliers.
In conclusion, the acquisition of Skechers by 3G Capital is a significant development in the world of footwear. The deal provides Skechers with the resources and expertise needed to accelerate its growth and take on bigger challenges in the competitive footwear market. With its strong brand and global presence, Skechers is well-positioned to continue its growth trajectory and become one of the leading players in the industry.
