Yesterday, a non-public fairness agency known as 3G Capital introduced it had struck a deal to amass Sketchers for $9.4 billion. Sketchers is publicly traded. The firm’s market cap was truly fairly a bit larger a number of months in the past. As just lately as January 31, Sketchers’ market cap was almost $11.5 billion.
Sketchers manufactures its merchandise in China and Vietnam, two nations that had been significantly onerous hit by Trump’s tariff madness. As a consequence, the corporate’s inventory worth sank, sending the market cap all the way down to round $7 billion earlier than the acquisition information. So whereas $9.4 billion could also be lower than $11.5 billion, it is a lot bigger than $7 billion… or doubtlessly much less relying on what occurs within the coming months.
But this is not a enterprise or political web site. So why am I telling you about Sketchers? Because the household that created the model has a really attention-grabbing and inspirational backstory…
From Mail-Order Toupees To Billionaire Shoe Moguls
In the early Sixties, Robert Greenberg was a hairstylist working in Brookline, Massachusetts. Hoping to make some more money, he launched a mail-order toupee enterprise. It was the primary in an extended line of eccentric entrepreneurial makes an attempt. He offered vintage clocks imported from South Korea. He tried his hand at digital tweezers, denims, curler skates, and even “E.T.”-themed shoelaces. None of it actually labored. Then he struck gold, for some time, with a sneaker firm known as L.A. Gear.
L.A. Gear rode the aerobics craze of the Eighties to large success. In 1990, the corporate generated over $800 million in income. It was flashy, stylish, and all over the place — till it wasn’t. The firm collapsed, and Robert was pressured out. But he wasn’t carried out.
Sketchers
In 1992, Robert and his son Michael launched Skechers out of a modest workplace in Manhattan Beach, California. The firm started as a distributor for Dr. Martens boots, however shortly shifted into private-label footwear. Their large concept? Import reasonably priced, trendy sneakers from Asia that regarded like the large manufacturers however offered at a cheaper price level.
Their first large hit got here with the Chrome Dome — a males’s utility boot that caught fireplace with teenagers. Then got here the Energy line, a platform sneaker for girls that exploded in reputation within the late ’90s. That momentum led Skechers to go public in 1999, giving the Greenbergs one other shot at constructing a sneaker empire — this time with extra endurance.
Unlike Nike and Adidas, Skechers by no means tried to be the best model on the shelf. Instead, it carved out a profitable lane in comfort-first, on a regular basis footwear. Over the years, it quietly expanded into efficiency classes like working, strolling, and golf, whereas sustaining a large catalog of way of life and work footwear.
Skechers now sells in over 180 nations, with 62% of its income coming from exterior the U.S. The firm introduced in $9 billion in income in 2024, a report yr regardless of mounting macroeconomic headwinds.
And sure, these headwinds had been severe: Skechers sources most of its product from Vietnam and China — two nations slammed by a 145% Trump-imposed tariff on sure imports. In April, the corporate withdrew its annual steerage, citing an excessive amount of uncertainty.
Skechers founders, Robert Greenberg and son Michael Greenberg (Photo by Carlos Chavez/Los Angeles Times by way of Getty Images)
The $1.1 Billion Payday
As we talked about on the prime of the article, yesterday it was revealed that Sketchers will likely be acquired by a non-public fairness agency known as 3G Capital for $9.4 billion. Sketchers will be part of different 3G Capital-owned manufacturers, Burger King and Tim Hortons.
The Greenberg household collectively owns about 12% of the corporate. Depending on which payout construction they select (straight money vs. a mixture of money and fairness within the new father or mother firm), the Greenbergs are poised to stroll away with round $1.1 billion.
The possession is unfold throughout two household trusts. In addition to Robert and Michael, 5 of Robert’s different youngsters — Jennifer, Scott, Jeffrey, Jason, and Joshua — are beneficiaries. Jason and Josh are each senior Skechers executives. The relaxation maintain board seats or non-operational roles.
Still Running the Show
Even after the deal closes, Robert Greenberg (now in his 80s) will keep on as CEO. Michael will stay president. The firm goes personal, however the household stays firmly in management.
That’s the actual takeaway right here: After a long time of trial, error, failure, reinvention, and gradual, regular progress, the Greenbergs did not simply construct a shoe firm — they constructed a dynasty. It’s one of the vital profitable family-run client manufacturers in fashionable American historical past.
And it began with a haircut and a field of wigs.
