(CTN News) – Skechers, a footwear manufacturer, announced on Monday that it has reached a deal with 3G Capital, a private equity firm, to acquire the company for one dollar and sixty-three cents per share.

Skechers will no longer be a publicly traded firm as a result of this decision, which comes after the company has been running its operations for more than three decades.

Skechers’ current public market valuation is 30% lower than the price agreed upon by 3G Capital for the company’s acquisition. This value is consistent with previous takeover strategies. It is consistent with other submitted acquisition proposals; thus, the valuation is appropriate.

A hypothetical takeover raised Skechers’ stock price by 25%.

Official agreement with international investment firm 3G Capital signals the start of the next phase of the company’s development program. This comment was made by’ CEO, Robert Greenberg. A reference was made to Skechers’ earlier achievements.

“Considering their distinguished history of fostering the success of prominent global consumer enterprises, we anticipate that this partnership will assist our skilled team in applying their expertise to fulfill the requirements of our consumers and clients, while also facilitating the company’s long-term growth,” stated the chief executive officer of the organization.

“We assert that this partnership will facilitate the company’s long-term growth.” The retail business has reached a watershed moment, particularly in the footwear industry, which is reliant on consumer discretionary spending and global supply chains that are currently being affected by the trade war initiated by President Donald Trump.

The issue is especially relevant in the footwear industry. This is particularly true for the shoe industry. The purchase takes place at a time when the footwear industry is facing several financial issues.

Skechers demonstrated their commitment to the industry by signing a statement issued by the Footwear Distributors and Retailers of America trade association.

Skechers is being petitioned to be exempt from Trump’s tariffs.

Skechers has chosen to abandon its full-year 2025 estimate due to the persistent macroeconomic uncertainty caused by international trade policy.

Skechers chose this option after a little over a week. The heightened volatility in the market served as impetus for this action. When an event of this kind occurs, businesses prepare for a decline in consumer spending, which will have a disproportionately negative impact on the clothing and footwear industries.

Businesses are currently planning for a fall in consumer expenditure. Skechers has issued a warning that because two-thirds of its operations are conducted outside of the United States, the tariffs will have a lesser impact on the company than they would otherwise.

The company did not reveal how much of its supply chain is located in China, where around one-fourth of the tariffs are now in effect.

Skechers is maybe the most successful shoe brand.

Skechers was not required to sign a contract because of the present market conditions, according to a source who was informed of the deal and spoke on the condition of anonymity to relay sensitive information.

Furthermore, according to the insider, 3G Capital has been considering acquiring the company for quite some time. According to a source, 3G Capital feels Skechers has promising long-term potential and is well-positioned for expansion.

Tariffs have posed challenges in the immediate aftermath. This is true even when tariffs cause some concern in the short run. Skechers is the world’s third-largest footwear manufacturer, alongside the industry giants Nike and Adidas.

Following the purchase, Greenberg will remain Skechers’ chief executive officer and will continue to pursue the firm’s strategy.

SOURCE: CNBC