RCG Corporation acquires Hype DC

adidasAustralia-based investment holding company, RCG Corporation, has purchased Australian footwear retailer Hype DC for approximately $105 million.

The deal will see RCG, whose brands include The Athlete’s Foot and Dr Martens, acquire 60 of Hype DC’s stores across Australia. Hype operates 57 Hype DC and three Shubar retail stores in Australia, predominantly in metro and major regional locations. The Trans-Tasman retailer said the acquisition will be earnings accretive in the 2016/17 financial year.

“Hype is an outstanding business that is perfectly aligned to RCG’s strategic objectives,” said Hilton Brett, RCG CEO.

Brett said bringing Hype into the RCG family will “unlock benefits and opportunities for the stakeholders of both businesses including staff, suppliers, customers and RCG shareholders.”

RCG said there will be no changes to the existing operating structure of either of the existing RCG businesses or Hype in the short term.

The company also confirmed Danny and Cindy Gilbert, who founded Hype, will continue to manage the business. Danny Gilbert has been appointed by RCG as its new executive director.

The retailer 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 the 2016/17, including the Hype DC deal, is expected to come in at $90 million.

Read more about RCG’s strategic rationale over the $105 million acquisition in this weeks edition of Inside Retail Weekly.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week. 


Comment Manually


Last week, Toll confirmed that its internal data had landed on the dark web. We spoke to a security expert about wh… https://t.co/XxTRBqTryg

7 hours ago

Woollen shoe brand Allbirds and global sports giant Adidas are sharing their manufacturing and materials innovation… https://t.co/5UgyV4ZYAr

9 hours ago

A wide-ranging interview with Cameron Holland, CEO of Luxury Escapes, about working from home, pivoting to new oppo… https://t.co/DCJnMs7y2f

10 hours ago