SYDNEY — Australian footwear retailer RCG Corp. Ltd. said Monday it is buying the Hype DC premium ath-leisure footwear chain for approximately 105 million Australian dollars, or $79 million at average exchange rates.
That purchase price is six times Hype DC’s normalized 2016 earnings before interest, taxes, depreciation and amortization of 17.5 million Australian dollars, or $13 million at average exchange for the period.
Hype DC operates 57 of its own stores and three stores for its vertically integrated Shubar brand. Group sales for fiscal 2016 were approximately 120 million Australian dollars or $90 million at average exchange, RCG said. Danny and Cindy Gilbert, who founded Hype DC in 1998, will continue to lead the business, RCG said.
With the deal, RCG Corp.’s footprint expands to 350 stores across Australia and New Zealand, making it Australasia’s largest footwear retailer. Its brand portfolio includes The Athlete’s Foot, Platypus Shoes, Podium Sports, Skechers, Merrell, CAT, Vans, Dr. Martens, Saucony and Timberland.