M&A: Burger King’s 3G Capital Acquires Skechers for $9.4 Billion

3G Capital, a Brazilian private equity firm known for its ownership of Burger King and Heinz, has made a surprising entry into the fashion industry by acquiring Skechers for a whopping $9.4 billion. This acquisition marks the largest in history for a footwear brand and the second largest in the fashion world, following Tiffany’s purchase by LVMH in 2020.

3G Capital, led by Brazilian billionaires Jorge Paulo Lemann, Carlos Alberto Sicupira, and Marcel Telles, made a bold move with this acquisition. The price paid for Skechers is slightly higher than the company’s record sales in 2024 and is approximately 13 times its net profits for the same year. The deal involves purchasing all outstanding shares of Skechers for $63 per share, representing a 30% premium compared to the average price of Skechers shares over the past 15 days. The transaction is expected to be finalized in the third quarter of 2025. Despite the acquisition, founder and CEO Robert Greenberg, along with his son, company president Michael Greenberg, will continue to lead Skechers. However, the company will be delisted from the stock market.

The announcement of this deal caught many off guard, with industry experts like Tom Nikic of Needham & Co describing it as “very surprising.” The decision to sell Skechers may have been influenced by the prevailing macroeconomic conditions, such as the ongoing trade war and fluctuations in consumer confidence. By being under the ownership of 3G Capital, Skechers will have the opportunity to navigate challenges without the scrutiny of Wall Street. Sonia Lapinsky from Alix Partners noted that this acquisition highlights the resilience of the footwear industry, which has shown a tendency to weather crises and recover swiftly.

This acquisition represents a significant milestone for both 3G Capital and Skechers. It demonstrates the growing interest of private equity firms in the fashion sector and the evolving landscape of the industry. Despite the industry’s challenges, Skechers, under new ownership, is poised to adapt and thrive in an ever-changing market.

In conclusion, the acquisition of Skechers by 3G Capital marks a pivotal moment in the history of both companies. While unexpected, this deal underscores the changing dynamics of the fashion world and highlights the potential for growth and innovation in the footwear industry. With this acquisition, Skechers is well-positioned to chart a new course under the ownership of 3G Capital and continue its legacy of providing innovative footwear solutions to consumers worldwide.