Jul 4, 2016
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RCG acquires Australia's Hype DC for $105 million

Jul 4, 2016

RCG Corporation has purchased Australian footwear retailer Hype DC for approximately $105 million.

The deal will see the Australia-based investment holding company, whose brands include The Athlete’s Foot and Dr Martens, acquire 60 of Hype DC’s stores Australia wide.

Hype DC acquired by RCG Corp - Hype DC

Hype operates 57 Hype DC and three Shubar retail stores in Australia. The Trans-Tasman group said the acquisition will be earnings accretive in the 2016/17 financial year.

RCG said its 2015/16 underlying earnings before interest, tax, depreciation and amortisations (EBITDA) is likely to be $60 million - the top-end of its guidance range.

Underlying earnings in 2016/17, including the Hype DC deal, are expected to come in at $90 million.

At its half-year results in February, RCG gave guidance of underlying full-year earnings for 2015/16 of $58 million to $60 million.

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