Australian footwear firm RCG has entered into a deal to buy a retailer of branded leisure and style footwear company Hype DC for $105m.
Hype DC operates 57 stores and three Shubar retail stores across Australia, as well as a fully integrated online retail business under both the Hype DC and vertically owned Shubar banners.
The mono-branded Shubar stores provide a range of men’s and women’s shoes, boots and sandals, as well as other premium brands.
The acquisition is a part of RCG’s plans to diversify its portfolio of 350 stores, along with distribution rights for 12 brands.
According to RCG, the acquisition will also provide improved flexibility and scale to explore new revenue opportunities, and potential cost-saving and efficiency improvements.
RCG CEO Hilton Brett said: "Hype is an outstanding business that is perfectly aligned to RCG’s strategic objectives.
"Bringing Hype into the RCG family will unlock enormous benefits and opportunities for all the stakeholders of both businesses including staff, suppliers, customers and RCG shareholders.
"Danny and Cindy Gilbert, together with the rest of the Hype management team have proven themselves to be consummate retailers and we are delighted to welcome them to the group.
"We look very forward to working with them as we continue to break new ground in the distribution and retail of branded footwear in the Australian and New Zealand markets."
The transaction, which is subject to approvals, consents and conditions, is scheduled to be completed in August.
Last May, RCG had acquired Accent Group, a New Zealand firm with operating subsidiaries in Australia and New Zealand.