Skechers Goes Private

👟 Skechers is going private after a $9 billion takeover bid from PE firm 3G Capital.

May 06, 2025

Silver banana goes to…




In this issue of the peel:

  • 📈 US stocks took a breather after a 9-day winning streak, while European and Asian markets are still feeling frothy.

  • 👟 Skechers is going private after a $9 billion takeover bid from PE firm 3G Capital.

  • 🛢️ US crude hit a multi-year low after OPEC agreed to increase production.

Market Snapshot

Banana Bits

Could This Company Do for Housing What Tesla Did for Cars?

Most car factories like Ford or Tesla reportedly build one car per minute. Isn’t it time we do that for houses?

BOXABL believes they have the potential to disrupt a massive and outdated trillion-dollar building construction market by bringing assembly line automation to the home industry.

Since securing their initial prototype order from SpaceX and a subsequent project order of 156 homes from the Department of Defense, BOXABL has made substantial strides in streamlining their manufacturing and order process. BOXABL is now delivering to developers and consumers. And they just reserved the ticker symbol BXBL on Nasdaq*

BOXABL has raised over $170M from over 40,000 investors since 2020. They recently achieved a significant milestone: raising over 50% of their Reg A+ funding limit! BOXABL is now only accepting investment on their website until the Reg A+ is full.

Disclosure: This is a paid advertisement for BOXABL’s Regulation A offering. Please read the offering circular here. This is a message from BOXABL

*Reserving a Nasdaq ticker does not guarantee a future listing on Nasdaq or indicate that BOXABL meets any of Nasdaq's listing criteria to do so.

Macro Monkey Says

Oil Prices Going Lower

OPEC members announced they’ve reached an agreement to increase production, leading to a significant drop in oil prices. Brent crude and West Texas Intermediate dropped, both reaching their lowest levels since early April.

The decision to boost output by 411,000 barrels per day in June marks the second consecutive month of accelerated production hikes, totaling a 960,000 bpd increase from April through June. This move is partly driven by Saudi Arabia's intent to enforce compliance among OPEC members, particularly targeting Iraq and Kazakhstan for exceeding their production quotas. 

Analysts have responded to the increased supply by adjusting their forecasts. Barclays lowered its 2025 Brent crude forecast by $4 to $66 per barrel and its 2026 forecast by $2 to $60, citing the anticipated supply increase. 

Goldman Sachs also reduced its Brent crude forecast to $60 per barrel for the remainder of 2025, down from a previous estimate of $62. 

The Takeaway?

OPEC+'s decision to accelerate oil production has led to a notable decrease in oil prices, reflecting the complex dynamics of global energy markets. While consumers may benefit from lower fuel costs, the move underscores the challenges within OPEC+ regarding production compliance and market share strategies. 

As the group continues to navigate these issues, the global economy watches closely, balancing the benefits of lower energy prices against the potential implications for oil-dependent economies.

Career Corner

Question

After the initial coffee chat, if I am not getting a response to my emails, is it okay to be persistent and follow up a third time via email?

Answer

In that case, fortune is in the follow-up. In sales, on average, it takes three to four emails to hear back from a lead, whether they are interested or not, and it takes about six emails and three phone calls to close an interested prospect. Just make sure you use our networking script as a base.

Head Mentor, WSO Academy

What's Ripe

Skechers (SKX) 24.3%

  • Skechers is going back into its private market security blanket. The footwear brand has decided it would be better off away from the public markets and having to deal with earnings calls. The stock jumped on news that it had received a $9 billion private buyout offer from PE firm 3G Capital.

FTAI Aviation (FTAI) 12.0%

  • FTAI got hit with a double dose of good news, with analysts reaffirming their bullish outlook and continuing insider selling. Benchmark analyst Josh Sullivan reiterated his “buy” rating with a $300 price target while CEO Joe Adams and COO David Moreno continued buying. Insider buying is always a good sign.

What's Rotten

On Semiconductor (ON) 8.4%

  • ON Semiconductor’s stock fell, even after reporting Q1 earnings that surpassed expectations. Despite the strong report, investors are concerned about softer demand across the chip market overall. 

Tyson Foods (TSN) 7.8%

  • Tyson foods beat earnings but sales missed, which has investors freaking out. The company’s beef business is facing “the most challenging market conditions it has ever seen.” Both sales and costs are going in the wrong direction. 

  • Sales are slumping on lower demand while beef prices are rising rapidly amid a cattle shortage to $6 a pound, or 50% more than 2020.

Thought Banana

Skechers Going Private 

Skechers is going full Kevin Durant and starting its next journey as a private company in a move that will cost some jobs. 

Private Equity firm 3G Capital is acquiring Skechers for $9.4 billion, offering shareholders $63 per share—a 30% premium over recent prices. Alternatively, shareholders can opt for $57 in cash plus a stake in the new private parent company. 

Despite the change in ownership, Skechers wants to remain the same at heart. Founder and CEO Robert Greenberg and President Michael Greenberg will continue to lead the company from its Manhattan Beach, California headquarters. 

The brand, known for its stylish yet affordable sneakers, has been navigating a rough environment lately, including supply chain challenges and tariff uncertainties. By transitioning away from the public eye, Skechers can work on itself and figure it’s sh*t out away from the cameras. 

They no longer have to deal with questioning from 25-year-old hedge fund analysts and the pressure of quarterly earnings reports. 

3G Capital’s track record is pristine. It’s mostly known for its investments in companies like Burger King, Kraft Heinz, and Anheuser-Busch InBev. The firm employs a very hands-on approach, emphasizing cost efficiency and strategic growth. 

Notably, its acquisition of Burger King in 2010 led to significant operational improvements and profitability. With Skechers' impressive global footprint—over 5,300 stores in approximately 180 countries—and a strong direct-to-consumer presence, 3G is betting on the brand's continued growth and resilience. 

The Takeaway?

Skechers is stepping into a new era, trading its public company status for a private partnership with 3G Capital. With leadership staying the course and a solid global presence, the brand is poised to continue its journey with renewed vigor. For shareholders, it's a chance to cash in or stay along for the ride. 

The Big Question: Can 3G Capital work its usual magic—or is the shoe business a different beast than burgers and beer?

Banana Brain Teaser

Previous

The quotient when a certain number is divided by 2/3 is 9/2. What is the number?

Answer: 3

Today

The harvest yield from a certain apple orchard was 350 bushels of apples. If x of the trees in the orchard each yielded 10 bushels of apples, what fraction of the harvest yield was from these x trees?

Send your guesses to [email protected]

❝

Perseverance is not a long race; it is many short races one after the other.

Walter Elliot

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Happy Investing,
Chris, Vyom, Ankit & Patrick