New Delhi: The Competition Commission of India (CCI) has granted approval for the proposed combination involving the acquisition of all outstanding shares and sole control of Skechers U.S.A., Inc. by affiliates of investment funds managed by 3G Capital Partners LP, alongside an investment by Kakapo Investment Pte. Ltd. The move marks a significant consolidation in the global footwear and lifestyle sector.
Details of the Proposed Combination
The proposed transaction, termed the Proposed 3G Transaction, entails the indirect acquisition of Skechers U.S.A., Inc. (the Target) by affiliates of 3G Capital Partners LP, specifically:
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Beach Acquisition Co Parent, LLC (Beach Parent), and
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Beach Acquisition Merger Sub, Inc. (Beach Merger Sub),
collectively referred to as the “Acquirers”. Both entities have been established solely for this acquisition and currently have no other business operations. These Acquirers are wholly owned by 3G Fund VI LP, a fund managed by 3G Capital’s affiliates.
Investment by Kakapo Investment Pte. Ltd.
As part of the transaction, GIC Investor—an investment vehicle wholly owned by GIC Blue Holdings Pte. Ltd., itself under GIC Ventures Pte. Ltd.—will infuse capital to partly finance the acquisition. Incorporated in November 2000 in Singapore, this entity forms a part of a group managed by GIC Special Investments Pvt. Ltd. and the Integrated Strategies Group of GIC.
About 3G Capital Partners
Founded in 2004, 3G Capital is a global investment firm well known for its owner-operator approach and focus on long-term value creation. It emphasizes maximizing brand potential and business performance through active ownership.
Profile of Skechers U.S.A., Inc.
Skechers operates prominently in the footwear, apparel, and accessories sector with a diversified portfolio that includes:
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Design, development, and marketing of lifestyle and performance footwear for casual, athletic, and work segments.
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Development and promotion of apparel, bags, eyewear, fitness and yoga accessories, and cold-weather products.
This acquisition positions 3G Capital and Kakapo Investment to strengthen their foothold in the global lifestyle and fashion industry, leveraging Skechers’ established brand equity and extensive product range.
Conclusion of CCI’s Approval
With the CCI’s approval, the acquisition by 3G Capital Partners and investment by Kakapo Investment signify a strategic move towards growth and innovation in the competitive global footwear and lifestyle market. The transaction underscores the commitment to long-term brand value and market leadership by all parties involved.
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Source: PIB
