Author Image

Samuel Regelman

Private Equity Puts on Sneakers

Private Equity Puts on Sneakers

By taking Skechers private, 3G gains freedom from quarterly scrutiny and room to reshape operations. But with heavy debt and a consumer-facing brand, aggressive cost-cutting carries real risks.

One private equity deal that has been drawing attention recently is 3G Capital’s acquisition of Skechers, which took the company for $9.4 billion. 3G announced the deal May 5th, 2025 and completed it on September 12th, 2025. 3G created acquisition companies, such as Beach Acquisition Co Parent, LLC, to purchase the company. Skechers is a very popular brand, and it continues to make a lot of money. However, recently Skechers has been facing higher short-term costs, causing its value to drop in the stock market. 3G is a private equity investment firm that has a record of purchasing large businesses with well-known brands. 3G took the opportunity of Skechers facing difficulties to acquire it, making this the largest footwear buyout. Overall, although Skechers is already a mature company, I believe this acquisition will allow its valuation to grow. The shareholders of Skechers were given two options: an all-cash consideration or a mixed consideration. They had

Create a Free Account to Unlock All Articles

Create a Free Account to Unlock All Articles

or

Already have an account? Log In