Bell Potter lauds RCG’s purchase of Accent Group

April 7, 2015 | Australian Financial Review

Bell Potter has a “buy” recommendation on RCG Corporation and a $1.20 target price.

The broker notes that RCB will acquire Accent Group (AGL), which has exclusive distribution licences for popular Skechers and Vans sneakers, for $180 million to $200 million “at an attractive 6x EBITDA, more than doubling its size”.

“The acquisition of AGL delivers a number of highly strategic benefits” including “new growth engine with significant growth now both at the retail and wholesale level”, “portfolio diversification”, “cross-branded distribution opportunities”, “scope to accelerate vertical strategy” and “scale benefits on costs, growth prospects and competitive position”.

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