Skechers, the American athletic footwear retailer, has agreed to be acquired by private equity firm 3G Capital for US$9.42 billion, equivalent to approximately HK$73.5 billion, amid increasing pressures from US tariff policies. The company, which manufactures a significant portion of its products in Vietnam and China, expressed concerns about its ability to weather the impact of tariffs.
The New York-based 3G Capital announced that it will purchase Skechers at US$63 per share in cash, representing a 28% premium. Following the announcement, Skechers' stock surged 24.35% on Monday (May 5), closing at US$61.39 per share.
Earlier this year, in April, Skechers withdrew its full-year earnings guidance, citing the negative effects of tariffs on its manufacturing operations in Vietnam and China. To offset rising costs, the company has been forced to increase prices and collaborate with suppliers. However, Skechers has warned that tariffs pose a "significant risk" to its business, potentially leading to shrinking profit margins, higher shoe prices, and decreased consumer demand.
The privatization deal is expected to provide Skechers with greater flexibility to tackle the challenges of the tariff environment without the pressures of being a publicly traded company. This marks the end of Skechers' 26-year history as a listed company, transitioning it to a privately held entity under 3G Capital's ownership.
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