Skechers has agreed to be taken private by investment firm 3G Capital in a deal that values the global footwear and lifestyle brand at US$9.42 billion (A$14.72 billion).
3G Capital will pay $63.00 per share in cash for all outstanding shares of Skechers USA Inc (NYSE: SKX), a premium of 30% to Skechers’ 15-day volume-weighted average stock price.
The transaction includes the option of receiving $57.00 in cash and one unlisted, non-transferable equity unit in a newly-formed, privately held company that will be Skechers' parent company.
Chairman and Chief Executive Officer Robert Greenberg said Skechers was entering its next chapter in partnership with 3G Capital after experiencing tremendous growth over the last three decades.
“Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the Company’s long-term growth,” Greenberg said in a statement.
“Our success has been due to our commitment to excellence and innovation across the entire Skechers organisation, our in-demand comfort-focused product offering, and loyal partners.”
Founded in 1992, California-based Skechers started out as a brand focused on men's street style with the launch of its popular shoe "Chrome Dome", but has come to be known for its comfort-first sneakers, according to Reuters.
The company has held up against stiff competition from legacy brands like Nike and newer entrants such as Hoka, thanks in part to its aggressive global expansion and focus on value.
This is the footwear industry's biggest buyout to date, removing Skechers from public markets after 26 years.
Skechers shares closed $12.02 (24.35%) higher at $61.39 on Monday, capitalising the company at $9.18 billion.
