With one foot in a Doc Martens boot and the other in a Vans sneaker, the owner of The Athlete's Foot is stepping into new territory.
RCG Corporation will pay up to $200 million for New Zealand's Accent Group, which owns sneaker chain Platypus Shoes and exclusive distribution rights to popular youth and street brands Vans, Dr Martens and Timberland.
The deal will increase RCG's store numbers by 97 to 269, and lift total sales from $267 million to $450 million.
Accent's brands, which also includes Skechers and Palladium, will open up RCG to new customers, offering a point of difference to the runners and sports shoes sold through its major chain The Athlete's Foot.
"That was obviously the appeal for us," RCG chief executive Hilton Brett.
"It provides us with a complimentary business - a complimentary portfolio of brands - rather than one that cannibalise your business."
The move has expanded RCG's brand portfolio from six to 13 licenses.
Mr Brett said this would improve the company's ability to respond to changes in a competitive retail market.
It also means RCG and Accent can sell each other's brands and make the most of their retail coverage.
"We think that Skechers is an opportunity to drive further growth through The Athlete's Foot," he said.
RCG brands Caterpillar, Sperry and Saucony may also soon appear on shelves in Platypus Shoes.
The timing for the acquisition was right for RCG, Mr Brett said, after a new board helped build its market value.
"We've been looking over the years for the right opportunity," he said.
As part of the deal, three of Accent's four shareholders will join the RCG board, subject to shareholder approval.
RCG will also aim to raise $125 million through a capital raising with investors and shareholders to help fund the acquisition.
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