RCG acquires Australia's Hype DC for $105 million

By

Benjamin Fitzgerald

Published
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 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.