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  August 25th, 2016 | Written by

NIKE in Strategic Partnership for Apparel Manufacturing in the Americas

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  • NIKE's new supply chain partnership.
  • NIKE partnership acquires apparel suppliers in North and Central America.
  • Rising demand for responsive apparel manufacturing.

NIKE, Inc. and Apollo Global Management have entered into a strategic partnership regarding the apparel supply chain in the Americas.

This innovative strategic partnership will increase regional manufacturing capabilities, enable quicker delivery of more customized product to consumers, and drive investment in sustainability.

To establish the strategic partnership, a new apparel supply chain company has acquired existing apparel suppliers in North and Central America and plans to invest in advancing their manufacturing operations and expertise to produce innovative, technical, and customized apparel. In addition, the new company expects to acquire additional textile and apparel suppliers in the Americas in order to broaden and diversify its capabilities and product offerings. This will create a more vertically-integrated apparel ecosystem, from materials suppliers and apparel manufacturers, to final embellishment, warehousing, and logistics.

“The new company, under Apollo’s leadership, is committed to embedding sustainability and transparency into the business, investing in new technology, vertically integrating critical elements of the supply chain and delivering the best Nike performance product to our retail and sports partners,” said Eric Sprunk, chief operating officer of the Oregon-based Nike.

“We see a tremendous opportunity to meet the rising demand for responsive apparel manufacturing to serve increasing consumer expectations for products delivered when and where they want them,” said Josh Harris, co-founder and senior managing director of Apollo. “We intend to work with management to develop a regional supplier capable of servicing the needs of a wide variety of customers, and we are particularly enthusiastic to be working with such an iconic brand as Nike. While Nike has not made a capital investment in the company, this strategic partnership is a testament to Nike’s commitment to increasing regional manufacturing capabilities, driving investment in innovation, and creating long-term growth.”

While terms of the agreements were not disclosed, Apollo today announced the new supply chain company has acquired two businesses to form the cornerstone of this strategy: the apparel manufacturer, New Holland; and the embellishment, warehousing, and logistics operator, ArtFX. The investment is made by the Apollo-managed Special Situations I fund.