Shares of Skechers USA soared Monday after investment firm 3G Capital agreed to take the company private in a deal valued at $9.41 billion.
Skechers stock vaulted 25% to 61.65 a share in morning trading, the highest since Feb. 26. It would be largest one-day gain since Oct. 20, 2017, when it surged 41.5%, according to Dow Jones Market Data.
3G Capital is offering $63 a share, a premium of nearly 28% from Friday's close at 49.37. Shareholders may opt to receive $57 per share plus one unlisted, nontransferable equity unit in a newly created privately held company that will become Skechers' parent after the deal closes.
Skechers said Chairman and CEO Robert Greenberg, President Michael Greenberg and Chief Operating Officer David Weinberg will remain at their jobs.
Skechers is the world's third-largest shoe company. It operates more than 5,300 stores with sales in about 180 countries.
Manhattan Beach, Calif.-based Skechers had $8.969 billion in sales last year, with 43% direct to consumers, according to FactSet.
"With a proven track-record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital," CEO Greenberg said in the announcement. "Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the Company's long-term growth."
The deal is expected to close in the third quarter.
New York-based 3G Capital is a private equity firm that last year acquired a stake in Restaurant Brands International, the holding company of Burger King, Tim Hortons, Popeyes and Firehouse Subs.
Skechers stock peaked in January at 78.85, according to IBD MarketSurge. It fell to a low of 44.50 on April 8. It has a Composite Rating of 48.
