By Inti Pacheco

Robert Greenberg never ran Skechers like a typical public company. The longtime chief executive avoided quarterly earnings calls. He tapped his son as his No. 2 executive. Soon, he won't have to worry about reporting financial results or securities filings.

The Skechers founder agreed to sell the maker of comfy sneakers in a deal worth about $9.4 billion to 3G Capital, a private-equity firm that has a history in the consumer-goods sector and had a hand in deals with AB InBev and Kraft Heinz.

Greenberg, 85, stands to collect a more than $1 billion payout from the stake he controls in the company through trusts. The CEO and other executives, including his son Michael Greenberg, have agreed to stay on to run the business. They will also take a stake in the privately held company.

The deal offers shareholders $63 in cash for each share they hold, sending Skechers shares surging 25% in Monday morning trading.

Skechers shares had tumbled from around $75 in January to below $50 recently after it withdrew financial guidance for the year. The company, along with other footwear makers like Nike, is exposed to tariffs on U.S. imports and trade disputes as about 40% of its goods come from China. Executives said last month that products coming into the U.S. from China will decrease.

The takeover plan offers shareholders a second option: Accept $57 in cash and take a small stake in the privately held company. 3G will own at least 80% of the newly formed company. The Greenberg family is expected to take the second option for as many shares as they can, said a person familiar with the matter.

The shoe company -- known for its hands-free slip-in styles -- has grabbed the attention of enough people to become the third-largest footwear company in the world by sales. It is on track to net $10 billion in revenue by 2026. Greenberg has run the business since he founded it in 1992.

In recent years, Skechers ventured into making performance footwear and sponsoring famous athletes like NBA star Joel Embiid and Bayern Munich striker Harry Kane. Skechers executives said the market was wide open because stars were disappointed with other brands.

But Wall Street didn't always see eye to eye with Skechers because the company wasn't flashy, executives said. Its stock value lags far behind much smaller upstarts like On or Hoka. Operations chief David Weinberg said in January that the Wall Street personnel wouldn't pay attention to a footwear brand unless it was athletic.

"The growth numbers are there, and all the financial people have seen it. They just don't know how to put it together to a size and scale that it can become," Weinberg said in an interview.

It's not the first time that 3G acquires a family-run business with an aging CEO. In 2022, the firm acquired window-covering manufacturer Hunter Douglas in a similar deal. The founding family continues to hold a 25% stake in the company, and the CEO's son runs the business.

Write to Inti Pacheco at inti.pacheco@wsj.com

(END) Dow Jones Newswires

May 05, 2025 11:34 ET (15:34 GMT)

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