Acquisitions Continue Bitzio's Strategic Focus on Apparel Brand Incubation Model
Los Angeles, CA / ACCESSWIRE / July 22, 2014 / Bitzio, Inc. (BTZO), a fashion company operating under the name Democratique, announced today that it has completed the acquisition of 100% of Lexi Luu Designs, Inc. and E-Motion Apparel, Inc. Lexi Luu Designs provides children's dancewear under the Lexi Luu brand name, and E-Motion Apparel is a casualwear line for women. Concurrent with the transactions, Bitzio appointed Hubert Blanchette as Chief Executive Officer, replacing Gordon McDougall who resigned from both his executive and board level positions.
"With the addition of Lexi Luu and E-Motion, we now have solidified core operating assets that have a history of solid fundamental performance, providing us with a strong foundation on which to execute our business strategy," commented Hubert Blanchette, co-founder of Lexi Luu and newly appointed Chief Executive Officer of Bitzio.
Mr. Blanchette is a fashion industry and executive veteran with experience in both public and private markets. In September 2010 he founded Lexi Luu, which designs, manufacturers and wholesales dance wear and active wear for girls. Its head manufacturing facility is located in Mesa, Arizona. In 2013, Hub led Lexi Luu to just shy of $600k in revenue, representing a 30% year over year increase. Sales to retailers and wholesale distributors historically represented all of Lexi Luu's sales; however, online sales to retail customers commenced in March 2011 and have increased to the point where they now represent roughly 43% of total sales. The transition was accomplished without use of advertising through 2013.
"The combination of Lexi Luu and E-Motion is a significant milestone for Bitzio," commented Marilu Brassington, Chief Financial Officer of Bitzio and Chief Executive Officer of E-Motion Apparel. "The combination increases the diversity of our product lines, reaching separate and synergistic target markets across new and existing geographic areas while leveraging our infrastructure and key personnel. With the consolidation of our combined financials, the vision of Democratique continues with a solid backbone to support our growth plans. With these assets securely in place, it's now time to continue our historical growth as founders and focus on hitting performance targets for these core brands."
E-Motion Apparel is a women's casual lifestyle apparel brand based in Los Angeles that Bitzio previously operated through an exclusive distribution agreement. Bitzioannounced its intent to acquire E-Motion Apparel in February 2014.
Mr. Blanchette continued, "I would like to thank Gordon McDougall for his service to Bitzio over the years, and for bringing together the new Bitzio team and Democratiquestrategy. We certainly wish him the best on his new endeavors."
Bitzio acquired Lexi Luu Designs and E-Motion Apparel in all stock transactions that closed on July 17, 2014 and July 18, 2014, respectively. Bitzio issued a total of 850 million common shares to complete the acquisitions.
About Bitzio, Inc.
Since 2013, Bitzio, Inc. (BTZO) has focused its business activities in the fashion industry, having adopted an innovative apparel incubation model. Uniquely qualified to identify promising apparel brands, Bitzio plans to accelerate the emergence of these brands by providing access to capital and applying Bitzio's extensive industry experience to the project of optimizing each brand's operations and developing its manufacturing and distribution channels. Bitzio is based in Los Angeles, California.
Forward Looking Statements
This news release contains forward-looking statements. The terms and phrases "expects", "would", "will", "believes", and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Bitzio in light of its experience and its perception of current conditions and expected future developments, as well as other factors that Bitzio believes are appropriate in the circumstances. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Certain risk factors that may cause actual results to differ are set forth in Bitzio's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (which may be obtained at www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE: Bitzio, Inc.