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New Delhi: The Competition Commission of India (CCI) has given its approval to the proposed combination involving the acquisition of all outstanding shares and sole control of Skechers U.S.A., Inc. by affiliates of 3G Capital Partners LP, along with a parallel investment by Kakapo Investment Pte. Ltd., a GIC entity.
The decision paves the way for one of the biggest private equity-backed transactions in the global footwear and lifestyle apparel sector, reinforcing India’s openness to international investment structures while ensuring compliance with competition laws.
Details of the Proposed Combination
The proposed combination includes two interconnected transactions:
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Proposed 3G Transaction:
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Affiliates of investment funds managed by 3G Capital Partners LP will acquire Skechers U.S.A., Inc. (the “Target”).
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Specifically, the entities Beach Acquisition Co Parent, LLC (Beach Parent) and Beach Acquisition Merger Sub, Inc. (Beach Merger Sub)—collectively referred to as the Acquirers—have been formed for the purpose of the transaction.
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These Acquirers are wholly owned by 3G Fund VI LP (3G Fund VI), a fund managed by affiliates of 3G Capital.
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Proposed GIC Investment:
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The GIC Investor (Kakapo Investment Pte. Ltd.), part of the Singapore-based sovereign wealth fund GIC Private Limited, will provide capital to finance the 3G acquisition.
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In return, the GIC Investor will secure certain rights in Skechers, thereby becoming a significant participant in the new ownership structure.
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The CCI’s nod ensures that both transactions can move forward, subject to a detailed order of the Commission that will be released in due course.
Background of the Acquirers
3G Capital Partners LP is a global investment firm founded in 2004. Built on an owner-operator philosophy, 3G Capital is known for its long-term investment approach with a strong emphasis on maximizing the potential of consumer brands and global businesses. The firm has a proven track record of acquiring and revitalizing some of the world’s best-known companies, especially in the food and beverage sector.
The newly established entities, Beach Parent and Beach Merger Sub, have no prior business activities and were created exclusively to facilitate this acquisition. Both are controlled by 3G Fund VI LP, a private equity fund under the management of 3G Capital.
Role of GIC
The second leg of the transaction involves investment by Kakapo Investment Pte. Ltd., a wholly-owned unit of GIC Blue Holdings Pte. Ltd., which in turn is fully owned by GIC Ventures Pte. Ltd.. The GIC Investor, incorporated in Singapore in November 2000, acts as an investment holding vehicle.
It is part of the broader GIC ecosystem managed by:
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GIC Special Investments Private Limited (GICSI), wholly owned by GIC Private Limited.
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The Integrated Strategies Group of GIC (GICISG).
As one of the world’s leading sovereign wealth funds, GIC has a global footprint, investing across asset classes, geographies, and sectors with a long-term horizon. Its participation in this deal underlines the strategic importance of Skechers in the global lifestyle and consumer goods market.
About the Target: Skechers U.S.A., Inc.
Skechers, the target company, is a globally renowned name in the footwear, apparel, and accessories industry. The company:
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Designs, develops, and markets a wide variety of lifestyle and performance shoes, catering to multiple segments such as casual wear, athletic needs, and occupational footwear.
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Offers a diverse portfolio of apparel, bags, eyewear, fitness and yoga accessories, as well as seasonal products like cold-weather gear.
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Has built a strong international presence, including significant operations and market share in India’s growing athleisure and casual footwear segment.
The acquisition is expected to accelerate Skechers’ expansion, product innovation, and consumer engagement worldwide.
Significance of the Deal
The CCI’s approval is significant because:
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It reinforces India’s role as a key jurisdiction for cross-border M&A deals, especially where the target company has substantial business operations in the Indian market.
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It brings together 3G Capital’s operational expertise and GIC’s financial strength, creating a formidable platform for Skechers’ global growth strategy.
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The deal could lead to enhanced competition in the Indian footwear and lifestyle market, benefiting consumers with greater choices and innovation.
Market watchers note that Skechers has been steadily expanding in India, capitalising on the growing demand for affordable athleisure footwear. With deep-pocketed investors like 3G and GIC backing its next phase of growth, Skechers could emerge as an even stronger competitor to brands such as Nike, Adidas, and Puma in the domestic market.
Next Steps
While the CCI has cleared the transaction, a detailed order explaining the reasoning and conditions (if any) will follow. Such orders typically outline how the regulator assessed the deal’s impact on competition in the Indian market, ensuring there are no adverse effects on consumer welfare or market dynamics.
For now, the clearance marks a crucial milestone in completing the global deal, which will likely require additional approvals from regulators in other jurisdictions.
Conclusion
The CCI’s green light to the 3G Capital-led acquisition of Skechers, with financing support from GIC’s Kakapo Investment, signals growing momentum in the global consumer sector’s consolidation wave. For Skechers, this development may open up new opportunities in product innovation, international expansion, and brand positioning, particularly in high-growth markets like India.
As the global footwear and lifestyle industry continues to evolve, this transaction highlights how strategic partnerships between private equity powerhouses and sovereign wealth funds are reshaping the competitive landscape.
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