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Cnn
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Skechers were fleeing the public market and hides by becoming private in the middle of a trade war.
The company announced on Monday that the 3G capital investment company will buy Skechers for $ 9.4 billion. 3G will pay $ 63 per share for the brand, a bonus of 30% of the company’s shares.
“With a proven track record, Skechers is entering its next chapter in partnership with the world investment company 3G Capital,” said CEO of Skechers, Robert Greenberg, in a statement. The stock of skechers jumped 25% to the news.
Skechers, based in southern California with 5,300 American stores, is the third largest shoe company in the world. Shoe companies are very exposed to the prices of President Donald Trump, which include 145% of rights to Chinese imports and a minimum tax of 10% on all other countries.
Ninety-nine percent of all shoes sold in the United States are manufactured abroad, according to shoe distributors and America retailers, an industrial group.
Skechers manufactures all the shoes it sells in the United States abroad, with around 40% of China, according to analysts. Skechers children’s shoes are mainly made in China. The company last month withdrew its financial guidelines due to the uncertainty concerning the prices.
Before Monday, Skechers’ shares had dropped by 26% this year with regard to fears of the impact of the business war on the company. This made the company an attractive target for 3G capital, said Neil Saunders, analyst at Globaldata Retail.
“Although the company is faced with short -term disturbances – just like each sneaker player – the longer term trajectory remains positive,” he said.
Skechers, Nike, Under Armor and other sneakers urged Trump to exempt the price shoe industry from a letter last week. Companies have warned that import taxes could eliminate hundreds of businesses, kill tens of thousands of jobs and increase consumers’ prices.
“US companies and families of shoes are faced with an existential threat of these substantial cost increases,” said companies. “This is an emergency that requires immediate action and attention.”
