12 Retech makes move into fashion retailing
Retail technology group 12 Retech Corporation has signalled its intention to buy out the Colorado Trading & Clothing Company, which trades as Active Fashion Group (AFG).
12 Retech has signed a letter of intent for the stock-for-stock transaction with EP Acquisition Vehicle Corporation to acquire 100 per cent of the Denver- and Hong Kong-based group.
Founded in 1998, AFG designs and makes lifestyle apparel under proprietary brands including Colorado Clothing, Soybu and Tranquility. The company primarily sells through major retailers including membership-only warehouse club stores, retail chains and digital retailers. To a lesser extent, it also sells through three proprietary e-commerce channels.
12 Retech CEO Angelo Ponzetta says the company plans to use AFG’s long-term relationships with major retailers to speed up acceptance of its retail technology products like the 12 Mirror (interactive electronic mirrors), 12 Mobile App and 12 Kiosk (interactive digital displays).
Describing 12 Retech as a perfect fit, AFG CEO/founder Jeff Schmitt says the corporation will give the group access to the capital and expertise it needs to expand. All key employees will be retained.
“By offering 12 Retech’s products and technologies, we will be able to provide new and unique shopper experiences,” says AFG chief of staff Carolyn Hadden.
Ponzetta, who is also CEO of 12 Hong Kong, says AFG will be the first of several planned acquisitions it plans to run under its new 12 Retail Corporation. 12 Retech also has a subsidiary in Japan.
AFG last year posted net revenues of $19.3 million, and with most of the due diligence contingencies satisfied, 12 Retech estimates the acquisition should be completed before year end.