MANHATTAN BEACH, California: After more than two decades as a public company, Skechers is set to go private in a US$9.42 billion deal with 3G Capital, marking the biggest acquisition in sneaker industry history.

The investment firm will pay $63 per share in cash, a 28 percent premium over Skechers' closing price late last week. The deal sent shares soaring 25 percent to $61.86 on May 5, partially reversing a 30 percent slump earlier this year after the company pulled its annual forecast and warned about the impact of steep U.S. import tariffs.

The brand, which sources much of its product from China, has been hit hard by President Donald Trump's 145 percent tariff on Chinese goods. Skechers, alongside Nike and Adidas America, has urged the administration to exempt shoes from the tariff list.

Needham analyst Tom Nikic noted that the challenging economic landscape — including weakening consumer sentiment and trade tensions — may have pushed Skechers to seek a path away from public scrutiny. "The deal was very surprising," Nikic said, adding that Skechers has long been seen as a "family business."

Founded in 1992, California-based Skechers gained early popularity with its "Chrome Dome" men's streetwear line and later evolved into a global comfort-focused footwear brand. It now operates around 5,000 stores in more than 120 countries, with shoes typically priced between $75 and $150.

Celebrity endorsements from notable figures like Britney Spears and Kim Kardashian have helped the brand maintain its cultural relevance and expand its customer base.

Sources told Reuters that Skechers did not conduct a competitive bidding process; instead, the deal was negotiated directly, given 3G Capital's longstanding relationship with the founding Greenberg family.

CEO and founder Robert Greenberg, 85, will continue to lead the company alongside President Michael Greenberg and COO David Weinberg.

3G Capital, best known for its stakes in consumer brands like Kraft Heinz, is expected to apply its typical strategy of boosting profitability through cost-cutting and operational efficiencies. Analysts at TD Cowen suggest that this raises the possibility of Skechers returning to the public markets in the future.

The transaction is expected to close in the third quarter of 2025 and will be funded through a mix of equity from 3G Capital and debt arranged by JPMorgan Chase Bank.