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The 3G Capital private capital firm made its name as an aggressive costs of costs in companies such as Kraft Heinz. Now it seems to be sliding into something more comfortable.
It is $ 9.4 billion on the Skechers Sneaker manufacturer this week flying in front of the broader slowdown in Wall Street Wheelings and treatment. However, the moment is impeccable. Skechers’s actions reached a record in March, then sank after President Trump unleashed his commercial war in April. Although 3G is paying a 30 percent premium at the average price of average shares of the 30 days of Skechers, its cash offer of $ 63 per shares remains approximately a fifth cheapest than where the shares quoted four months ago.
But Skechers also comes with some peculiarities that make it an attractive acquisition objective even in a market where many buyers doubt. Robert Greenberg, the company’s 85 -year -old founder and long -standing executive director, controls About 60 percent of the vote rights together with their family, giving them the latest about the management of the company.
In the context of Trump’s rates and weakening the demand of the consumers of the United States, Greenberg, 85, must have felt that it would be easier to move away the uncertainty of the public market. And 3G has been able to offer an unusual way to put it on board: a participation in the new company. Other shareholders also have a limited opportunity to do the same.
Skechers is not what you could call an avant -garde brand. His shoes are not searched by shoes or turned at the resale sites. On the other hand, its appeal is comfort and affordability, which has won fans among women, children and baby boomers. Sales almost tripled in the last decade at $ 9 billion last year, which makes it the fifth largest shoe company in the world after Nike, Adidas, Puma and China Anta Sports.
The 145 percent Trump rate on Chinese imports can also bite less hard than the sale of shares in Skechers actions. About 40 percent of Skechers products are from China, according to Barclays. But the company generates only around a third of its sales in the United States. Compare that with 88 percent in GAP, for example. There may be room to divert products made by China to non -American markets and keep stable prices in the United States. Skechers could also benefit since squeezed consumers look for more affordable footwear options.
Skechers has very little debt, which means that 3G should be able to borrow quite easily to finance your treatment. With a clean balance, more flexibility in its business model to deal with tariffs than some of their colleagues and a large and willing shareholder, it is not surprising that the company has found an attractive agreement in a scarce M&A market. For other possible acquisition objectives, these are large shoes to fill.