RCG Corporation to acquire Hype DC

Company News

by Jessica Ellerm

RCG Corporation Limited (ASX:RCG) has announced it has entered into an agreement to acquire branded athleisure footwear group Hype DC for approximately $105 million.
The deal will see RCG acquire sixty stores across Australia for six times EBITDA.
The purchase complements the RCG portfolio, which currently includes The Athlete’s Foot and Accent Group, a footwear distributor and branded store operator.  
Following the acquisition of Hype DC, RCG is now targeting annualised FY17 earnings of $90 million. 
RCG Corporation Limited reported a net profit of $16.17 million at 27 December 2015.

Jessica Ellerm

Finance News Network
Jessica joined FNN in April 2016 and presents the Australian Share Market Outlook, and reports on the morning's leading business stories. Alongside FNN Jessica is a fintech industry commentator, writing for her own blog and a number of international online publications.