Latest news with #3GCapital
Reuters
4 days ago
- Business
- Reuters
Skechers shareholder sues footwear maker for details on $9.4 billion 3G buyout
May 30 (Reuters) - A Skechers USA (SKX.N), opens new tab shareholder has sued the footwear maker for more details about its $9.4 billion buyout by private equity firm 3G Capital, saying the decision by Skechers' founder and controlling shareholder to sell raises "red flags." According to a complaint filed on Thursday in Los Angeles federal court, founder Robert Greenberg and his family, who hold about 60% of Skechers' voting power, appear to have "controlled the sales process to a single bidder and deprived the minority stockholders of any legitimate bidding process." Florida-based Key West Police Officers & Firefighters Retirement Plan said the buyout should not close until Skechers makes required disclosures with the U.S. Securities and Exchange Commission to help shareholders decide if the terms are fair. The complaint cited a Reuters article in which Needham analyst Tom Nikic called the buyout "very surprising" because Skechers was considered a family business, and sources said the Greenbergs eschewed an auction because of their long ties to 3G. Known for comfort-first sneakers, Skechers is the world's third-largest footwear maker. Skechers spokeswoman Jennifer Clay declined to comment on Friday, saying the Manhattan Beach, California-based company does not discuss pending litigation. The vast majority of large U.S. corporate mergers are challenged in court. Lawsuits seeking greater disclosures often end with defendants paying legal fees to plaintiffs' lawyers, and plaintiffs recovering nominal payouts or nothing. According to a regulatory filing, Greenberg, 85, could collect more than $1 billion from the buyout, which is scheduled to close in the third quarter. The buyout values Skechers at $63 per share in cash, 20% below its 52-week high of $78.82 set on January 30. Like other footwear makers including Nike (NKE.N), opens new tab, Skechers faces pressure from U.S. President Donald Trump's tariffs. Many Skechers' products come from China, and the company withdrew its full-year financial guidance in April. Brazil-based 3G is known for stringent cost-cutting, including at such companies as Anheuser-Busch InBev ( opens new tab and Kraft Heinz (KHC.O), opens new tab. The case is Key West Police Officers & Firefighters Retirement Plan v Skechers USA Inc et al, U.S. District Court, Central District of California, No. 25-04863.
Zawya
7 days ago
- Business
- Zawya
Retailers pummeled by Trump's trade war entertain more 'take-private' offers
NEW YORK - Boards and the owners of retailers whose shares have been pummeled by U.S. President Donald Trump's trade war are increasingly warming to offers to sell – and to escape the market chaos that has caused company valuations to seesaw in recent months. Following sneaker-maker Skechers' take-private deal earlier this month, dealmakers expect other retailers to clinch their own agreements to go private in the near-term, especially if Trump does not soon settle on a more stable trade policy, according to interviews with 10 investment bankers and M&A lawyers. Retailers in particular have been hard-hit by Trump's rapidly shifting tariff announcements, and are frustrated with an inability to provide earnings guidance. Skechers was in talks with investment firm 3G Capital long before its market value began a precipitous drop from an all-time high of around $11.85 billion on January 30 - the day before the White House announced its first round of tariffs against China - according to two people familiar with the matter. The flood of tariff announcements beat the company's value down to about $7.4 billion by the end of April. Skechers, which manufactures most of its goods in China and Vietnam, pulled its 2025 earnings guidance around that time, citing 'macroeconomic uncertainty stemming from global trade policies." Skechers is majority-owned by the Greenberg family. The tariff turmoil made the idea of going private all the more attractive to the Greenbergs, said the sources, who asked not to be named because the negotiations were private. The company announced plans on May 5 to sell to 3G Capital in a so-called take-private deal for about $9.4 billion. Selling to a privately held firm like 3G removes the company's shares from public exchanges, which effectively shields its earnings from public scrutiny and protects its valuation from unpredictable market swings. Skechers declined to comment. Other retailers are already in talks to sell to investment firms and other companies, the sources said. 'The breakneck pace of the instability, the volatility, and the macro changes have made board members start thinking, 'Would it be better to manage this business in private where we don't have to report out to the street with the same quarterly cadence and where we can control operational, financial, and capital allocation decisions in private?'' said Kurt Anthony, head of consumer and retail investment banking for the Americas at UBS. TAKE-PRIVATE TARGETS Few industries have been hit harder by Trump's tariffs than retailers, many of which manufacture most of their goods overseas and have had to pull earnings guidance amid fickle foreign policy. After de-escalating his trade war, Trump on Friday levied fresh threats against Apple and the European Union, sending markets that had mostly recovered from his initial trade moves reeling once again. The S&P Retail Select Industry index had fallen by 6% year-to-date as of Friday's market close, while the broader S&P 500 Index had fallen 1.1% in the same period. 'There are a lot of CEOs that reached out to me and said 'I'm tired, I love what I do, but maybe it's time I go private,'' said Jamie Salter, CEO of Authentic Brands Group. The company, which owns the intellectual property of several apparel companies including Reebok and Champion, acquired Dockers' IP from Levi's last week. 'I think you're going to see good companies either stay private, or go private.' And companies where a family - as in the case of Skechers - or a single investor has a controlling stake can sign these deals faster and more easily than those that need broad shareholder approval. Investment bankers and advisers pointed to other retailers with similar ownership structures as potential take-private targets: Under Armour where founder and CEO Kevin Plank has majority voting control, Columbia Sportswear Company where chairman and CEO Timothy Boyle and his family are the biggest shareholders, and Birkenstock with private equity firm L Catterton holding a majority stake. Under Armour, Columbia, Birkenstock and L Catterton did not respond to requests for comment. In Skechers' case, navigating the market uncertainty in private made sense to father-son duo Robert Greenberg, chairman and CEO, and Michael Greenberg, president, said the two people familiar with the family's thinking. And a buyer like 3G, which has held some investments for over a decade, can afford to ride out short-term tariff and market volatility compared with traditional private equity firms that tend to hold their investments for a handful of years, the people said. (Reporting by Abigail Summerville in New York; Additional reporting by Helen Reid in London; Editing by Dawn Kopecki and Matthew Lewis)
Japan Times
28-05-2025
- Business
- Japan Times
Retailers pummeled by Trump's trade war entertain more 'take-private' offers
Boards and owners of retailers whose shares have been pummeled by U.S. President Donald Trump's trade war are increasingly warming up to offers to sell — and to escape the market chaos that has caused company valuations to seesaw in recent months. Following sneaker-maker Skechers' "take-private" deal earlier this month, dealmakers expect other retailers to clinch their own agreements to go private in the near term, especially if Trump does not soon settle on a more stable trade policy, according to interviews with 10 investment bankers and M&A lawyers. Retailers in particular have been hard-hit by Trump's rapidly shifting tariff announcements, and are frustrated with an inability to provide earnings guidance. Skechers was in talks with investment firm 3G Capital long before its market value began a precipitous drop from an all-time high of around $11.85 billion on Jan. 30 — the day before the White House announced its first round of tariffs against China — according to two people familiar with the matter. The flood of tariff announcements beat the company's value down to about $7.4 billion by the end of April. Skechers, which manufactures most of its goods in China and Vietnam, pulled its 2025 earnings guidance around that time, citing "macroeconomic uncertainty stemming from global trade policies." Skechers is majority-owned by the Greenberg family. The tariff turmoil made the idea of going private all the more attractive to the Greenbergs, said the sources, who asked not to be named because the negotiations were private. The company announced plans on May 5 to sell to 3G Capital in a take-private deal for about $9.4 billion. Selling to a privately held firm such as 3G Capital removes the company's shares from public exchanges, which effectively shields its earnings from public scrutiny and protects its valuation from unpredictable market swings. Skechers declined to comment. Other retailers are already in talks to sell to investment firms and other companies, the sources said. "The breakneck pace of the instability, the volatility, and the macro changes have made board members start thinking, 'Would it be better to manage this business in private where we don't have to report out to the street with the same quarterly cadence and where we can control operational, financial, and capital allocation decisions in private?'' said Kurt Anthony, head of consumer and retail investment banking for the Americas at UBS. Few industries have been hit harder by Trump's tariffs than retailers, many of which manufacture most of their goods overseas and have had to pull earnings guidance amid fickle foreign policy. After de-escalating his trade war, Trump on Friday levied fresh threats against Apple and the European Union, sending markets that had mostly recovered from his initial trade moves reeling once again. The S&P Retail Select Industry index had fallen by 6% year-to-date as of Friday's market close, while the broader S&P 500 Index had fallen 1.1% in the same period. "There are a lot of CEOs that reached out to me and said 'I'm tired, I love what I do, but maybe it's time I go private,'' said Jamie Salter, CEO of Authentic Brands Group. The company, which owns the intellectual property of several apparel companies including Reebok and Champion, acquired Dockers' IP from Levi's last week. "I think you're going to see good companies either stay private, or go private.' And companies where a family — as in the case of Skechers — or a single investor has a controlling stake can sign these deals faster and more easily than those that need broad shareholder approval. Investment bankers and advisers pointed to other retailers with similar ownership structures as potential take-private targets: Under Armour where founder and CEO Kevin Plank has majority voting control, Columbia Sportswear Company where chairman and CEO Timothy Boyle and his family are the biggest shareholders, and Birkenstock with private equity firm L Catterton holding a majority stake. Under Armour, Columbia, Birkenstock and L Catterton did not respond to requests for comment. In Skechers' case, navigating the market uncertainty in private made sense to father-son duo Robert Greenberg, chairman and CEO, and Michael Greenberg, president, said the two people familiar with the family's thinking. And a buyer such as 3G Capital, which has held some investments for over a decade, can afford to ride out short-term tariff and market volatility compared with traditional private equity firms that tend to hold their investments for a handful of years, the people said.
Fashion Network
28-05-2025
- Business
- Fashion Network
Retailers pummeled by Trump's trade war entertain more 'take-private' offers
Skechers was in talks with investment firm 3G Capital long before its market value began a precipitous drop from an all-time high of around $11.85 billion on January 30 - the day before the White House announced its first round of tariffs against China - according to two people familiar with the matter. The flood of tariff announcements beat the company's value down to about $7.4 billion by the end of April. Skechers, which manufactures most of its goods in China and Vietnam, pulled its 2025 earnings guidance around that time, citing 'macroeconomic uncertainty stemming from global trade policies." Skechers is majority-owned by the Greenberg family. The tariff turmoil made the idea of going private all the more attractive to the Greenbergs, said the sources, who asked not to be named because the negotiations were private. The company announced plans on May 5 to sell to 3G Capital in a so-called take-private deal for about $9.4 billion. Selling to a privately held firm like 3G removes the company's shares from public exchanges, which effectively shields its earnings from public scrutiny and protects its valuation from unpredictable market swings. Skechers declined to comment. Other retailers are already in talks to sell to investment firms and other companies, the sources said. 'The breakneck pace of the instability, the volatility, and the macro changes have made board members start thinking, 'Would it be better to manage this business in private where we don't have to report out to the street with the same quarterly cadence and where we can control operational, financial, and capital allocation decisions in private?'' said Kurt Anthony, head of consumer and retail investment banking for the Americas at UBS. Few industries have been hit harder by Trump's tariffs than retailers, many of which manufacture most of their goods overseas and have had to pull earnings guidance amid fickle foreign policy. After de-escalating his trade war, Trump on Friday levied fresh threats against Apple and the European Union, sending markets that had mostly recovered from his initial trade moves reeling once again. The S&P Retail Select Industry index had fallen by 6% year-to-date as of Friday's market close, while the broader S&P 500 Index had fallen 1.1% in the same period. 'There are a lot of CEOs that reached out to me and said 'I'm tired, I love what I do, but maybe it's time I go private,'' said Jamie Salter, CEO of Authentic Brands Group. The company, which owns the intellectual property of several apparel companies including Reebok and Champion, acquired Dockers ' IP from Levi's last week. 'I think you're going to see good companies either stay private, or go private.' And companies where a family - as in the case of Skechers - or a single investor has a controlling stake can sign these deals faster and more easily than those that need broad shareholder approval. Investment bankers and advisers pointed to other retailers with similar ownership structures as potential take-private targets: Under Armour where founder and CEO Kevin Plank has majority voting control, Columbia Sportswear Company where chairman and CEO Timothy Boyle and his family are the biggest shareholders, and Birkenstock with private equity firm L Catterton holding a majority stake. Under Armour, Columbia, Birkenstock and L Catterton did not respond to requests for comment. In Skechers' case, navigating the market uncertainty in private made sense to father-son duo Robert Greenberg, chairman and CEO, and Michael Greenberg, president, said the two people familiar with the family's thinking. And a buyer like 3G, which has held some investments for over a decade, can afford to ride out short-term tariff and market volatility compared with traditional private equity firms that tend to hold their investments for a handful of years, the people said.
Fashion Network
28-05-2025
- Business
- Fashion Network
Retailers pummeled by Trump's trade war entertain more 'take-private' offers
Skechers was in talks with investment firm 3G Capital long before its market value began a precipitous drop from an all-time high of around $11.85 billion on January 30 - the day before the White House announced its first round of tariffs against China - according to two people familiar with the matter. The flood of tariff announcements beat the company's value down to about $7.4 billion by the end of April. Skechers, which manufactures most of its goods in China and Vietnam, pulled its 2025 earnings guidance around that time, citing 'macroeconomic uncertainty stemming from global trade policies." Skechers is majority-owned by the Greenberg family. The tariff turmoil made the idea of going private all the more attractive to the Greenbergs, said the sources, who asked not to be named because the negotiations were private. The company announced plans on May 5 to sell to 3G Capital in a so-called take-private deal for about $9.4 billion. Selling to a privately held firm like 3G removes the company's shares from public exchanges, which effectively shields its earnings from public scrutiny and protects its valuation from unpredictable market swings. Skechers declined to comment. Other retailers are already in talks to sell to investment firms and other companies, the sources said. 'The breakneck pace of the instability, the volatility, and the macro changes have made board members start thinking, 'Would it be better to manage this business in private where we don't have to report out to the street with the same quarterly cadence and where we can control operational, financial, and capital allocation decisions in private?'' said Kurt Anthony, head of consumer and retail investment banking for the Americas at UBS. Few industries have been hit harder by Trump's tariffs than retailers, many of which manufacture most of their goods overseas and have had to pull earnings guidance amid fickle foreign policy. After de-escalating his trade war, Trump on Friday levied fresh threats against Apple and the European Union, sending markets that had mostly recovered from his initial trade moves reeling once again. The S&P Retail Select Industry index had fallen by 6% year-to-date as of Friday's market close, while the broader S&P 500 Index had fallen 1.1% in the same period. 'There are a lot of CEOs that reached out to me and said 'I'm tired, I love what I do, but maybe it's time I go private,'' said Jamie Salter, CEO of Authentic Brands Group. The company, which owns the intellectual property of several apparel companies including Reebok and Champion, acquired Dockers ' IP from Levi's last week. 'I think you're going to see good companies either stay private, or go private.' And companies where a family - as in the case of Skechers - or a single investor has a controlling stake can sign these deals faster and more easily than those that need broad shareholder approval. Investment bankers and advisers pointed to other retailers with similar ownership structures as potential take-private targets: Under Armour where founder and CEO Kevin Plank has majority voting control, Columbia Sportswear Company where chairman and CEO Timothy Boyle and his family are the biggest shareholders, and Birkenstock with private equity firm L Catterton holding a majority stake. Under Armour, Columbia, Birkenstock and L Catterton did not respond to requests for comment. In Skechers' case, navigating the market uncertainty in private made sense to father-son duo Robert Greenberg, chairman and CEO, and Michael Greenberg, president, said the two people familiar with the family's thinking. And a buyer like 3G, which has held some investments for over a decade, can afford to ride out short-term tariff and market volatility compared with traditional private equity firms that tend to hold their investments for a handful of years, the people said.
