Skechers soars after the sneaker giant inks a $9.4 billion deal to go private
The chunky shoe icon is leaving Wall Street after 26 years on the market.
Skechers stock jumped as much as 25% on Monday after the ’90s sneaker staple announced a $9.4 billion go-private deal with private equity firm 3G Capital.
The brand has seen a revival in recent years, boosted by the chunky sneaker trend and a streak of strong sales, including a record $2.41 billion in Q1 of this year. But Skechers also slashed its full-year forecast, citing “macroeconomic uncertainty stemming from global trade policies.” Skechers is particularly vulnerable to recent tariff hikes, with 40% to 45% of its footwear made in China.
Before the deal, Skechers had a market cap of $7.4 billion. The buyout values the company at $9.4 billion, or $63 per share — still about $2 below its current trading price, even after the post-deal pop. The deal is expected to close by Q3 and will be financed through a mix of cash from 3G and debt financing by JPMorgan Chase.
Even with today’s rally, Skechers shares are still down roughly 8% this year.
