Barron’s Daily: Was Skechers The $10-B Deal Buffett Missed?

Warren Buffett’s weekend comment that Berkshire Hathaway nearly pulled the trigger on a $10 billion acquisition has investors speculating that the one that got away was Skechers.

Skechers, the world’s No. 3 athletic footwear brand behind Nike and Adidas. I Photo: Skechers Facebook

Recently, Skechers announced it had agreed to be taken private by 3G Capital for about $9.3 billion, Barron’s Daily reporters Andrew Bary and Janet H. Cho wrote.

Skechers may have appealed to Berkshire because it already owns Brooks Running, a U.S.-based maker of premium running shoes with $1.5 billion in annual sales. Skechers will go private at $63 per share—a 30% premium over its 15-day volume-weighted average price but still below its 52-week high of $79.

The purchase values the company at about 15 times 2024 earnings and 17 times estimated 2025 profits.

Skechers, the world’s No. 3 athletic footwear brand behind Nike and Adidas, is family-controlled and led by 85-year-old founder and CEO Robert Greenberg. It has a strong balance sheet, low debt, and nearly $1 billion in cash.

3G Capital previously teamed up with Berkshire to buy Heinz in 2013 and again in the 2015 Kraft-Heinz merger. This time, it’s possible Berkshire and 3G were competing bidders for Skechers.