More than half of this amount will be financed by debt. $5bn will be raised on the primary market on May 26, via JPMorgan. Skechers confirmed on Monday morning that it had accepted the offer. This is a "premium" offer, i.e. higher than the current stock market value: +30% compared to the 15-day weighted average price, +28% compared to Friday's closing price.

Shareholders will be able to choose between receiving $63 per share or $57 per share and a stake in the future entity. 3G Capital will hold 80%.

The 3G Capital method: cut, merge, dominate

3G Capital has carved out a reputation in the business world by buying iconic brands and restructuring them at a rapid pace to turn them into global giants. Its specialty: rare but massive investments and extremely rigorous management.

Amongst its favorite tools are zero-based budgeting, which requires managers to justify every expense each fiscal year as if they were starting from scratch, and growth through consolidation: merging several entities, eliminating duplication, increasing margins, and creating conglomerates capable of exerting global influence.

The most emblematic example remains beer. In the late 1990s, 3G merged two Brazilian brewers to form AmBev, which in 2004 joined forces with Belgium's Interbrew (Stella Artois, Leffe) to become InBev. Then in 2008, InBev swallowed up the American company Anheuser-Busch (Budweiser) for $52bn. In 2016, AB InBev absorbed SABMiller for more than $100bn. The result: a global empire with brands such as Budweiser, Corona, Beck's, and Stella Artois.

Burger King, Heinz-Kraft: the 3G recipe

In 2010, the fund made a name for itself with the acquisition of Burger King, the largest LBO (leveraged buyout) of the year ($4bn). Despite a 46% premium, the gamble paid off: cash flow tripled in three years, and the deal is said to have brought in $19bn.

3G has close ties with Warren Buffett. In 2014, the 3G-Berkshire Hathaway duo acquired Tim Hortons and created Restaurant Brands International (Burger King, Tim Hortons, then Popeyes in 2017).

On February 14, 2013, the same duo bought H.J. Heinz for $23.2bn. Less than two years later, they merged with Kraft. It was a time of drastic cost-cutting: free candy disappeared from the headquarters, double-sided printing became internal policy... and 15% of the workforce was laid off in a matter of months.

But the stock market followed suit: the share price rose from $73 to $96 between 2016 and 2017. Buoyed by this success, they immediately announced their intention to try to buy Unilever with a $143bn offer. It was rejected.

That's when the machine started to break down. Failed strategies (organic, additive-free products) left Heinz-Kraft by the wayside. After gradually withdrawing from operational management, 3G exited completely in 2023.

 

An ambition with snags

With Skechers, 3G entered an unfamiliar world: sneakers. Previously focused on agri-food and fast food, the fund relied on its proven formula to boost the group's profitability.

Today, Skechers has an operating margin of 10%, compared with 13.14% for Nike and 24.88% for Birkenstock. The revenue/net income ratio also leaves room for improvement: 14x at Skechers, compared to 9x at Nike and 9.375x at Birkenstock. So there is potential... if the 3G model can adapt to the world of sneakers.