E-retailer of customised uniforms and sports apparel, ONTHEGO (OTG), has announced that the Workwear Group (WWG), a subsidiary of Wesfarmers Industrial & Safety, has acquired an equity stake in its business and formed a joint venture relationship.
Mick Spencer, CEO of OTG, said the capital raise would help the Canberra-headquartered company secure its position as the disruptive leader in the uniform and sports apparel industry.
“This deal demonstrates that the market sees value in OTG’s digital disruption model. By bringing the OTG platform to the Workwear Group we will be able to offer customisation and on-demand manufacturing, leading to an enhanced retail offer for their customers,” Spencer said.
Doug Swan, CEO of Workwear Group, said, “This is a great opportunity for the Workwear Group to disrupt itself and further enhance its position as Australia and New Zealand’s leading uniform provider.”
The first phase of this relationship will be a joint venture between OTG and the Workwear Group. Leveraging the digital experience of OTG will enable the Workwear Group to enhance its customer proposition and extend into new product categories.
“This joint venture gives us volume, scale, and access to the Workwear Group’s extensive network, “ Spencer said.
“While sportswear apparel will continue to be a core part of OTG’s business, we are maturing as an organisation and expanding into many other verticals, including uniforms, workwear and corporate wear.”
David Baxby, Managing Director of Wesfarmers Industrials, said, “The investment in OTG will allow the Workwear Group to bring its market leading uniform business to a new SME segment. OTG has built a lean business model that allows us to be responsive to a new group of customers.”