3G Capital is lacing up for a $9.4 billion takeover of Skechers USA Inc.
The deets: 3G Capital, known for bold buys like Kraft Heinz and Burger King, is returning to M&A after a four-year breather. The company is a global investment firm known for acquiring and restructuring major consumer brands through aggressive cost-cutting and long-term value plays.
Meanwhile, Skechers is a U.S.-based footwear company that designs, develops, and sells casual and performance shoes for men, women, and children worldwide.
The footwear company is going from public to private post the buy. The move lets it step away from market pressure and focus on long-term strategy. It also gives 3G a chance to revamp the brand away from Wall Street’s spotlight.
The why: 3G sees a golden opportunity to grab Skechers at a discount, especially as the brand has global recognition & a deep retail footprint. With tariffs rising and the footwear sector struggling, it’s the perfect time for a private equity firm to step in and turn things around.
Zoom out: Skechers is still profitable, but it’s been wobbling. Rising costs, and slowing demand have hurt margins. Being public during a retail storm hasn't helped either, going private may give it room to restructure quietly and push long-term plays without Wall Street breathing down its neck.
Big theme: Globally, the footwear industry is still growing. It was valued at around $438.6 billion in 2023 and is expected to expand at a rate of 4.3%, reaching nearly $600 billion by 2030, according to Grand View Research.
However, margins are tightening in the industry. The footwear sector relies heavily on extra spending & global supply chains, mostly concentrated in Asia.
That’s exactly where Donald Trump’s trade war and 100% tariffs on imports hit hardest. It jacks up costs for U.S. brands importing shoes or components from countries like China, India, and Vietnam, making them rethink pricing, sourcing, and profitability.
So while the market is growing, the profit pools are shifting from traditional mass retail to direct-to-consumer. That’s why big legacy names like Skechers may find it easier to restructure off the public market grid, with private equity backers like 3G Capital calling the plays.
