Sportswear manufacturer Nike has announced a strategic partnership with a private equity firm, aiming to increase the company’s manufacturing capabilities in the Americas.
As part of the partnership, Apollo Global Management has established a new apparel supply chain company and has begun acquiring Nike suppliers in North and Central America.
Eric Sprunk, Nike's chief operating officer, said: “We are excited to be working with Apollo to rethink a new supply chain model to revolutionise apparel manufacturing in the Americas.”
Under Apollo’s leadership the new supply chain company plans to invest in suppliers and expand by acquiring additional textile and apparel firms.
Nike and Apollo said this would create a more vertically integrated supply chain, resulting in an increase in regional manufacturing capabilities and quicker deliveries of more customised products.
“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, senior managing director of Apollo.
While the terms of the agreement were not disclosed, Harris said Nike had not made any capital investment in the company.
The new supply chain company has already purchased apparel manufacturer New Holland and logistics operator ArtFX.
“The new company, under Apollo’s leadership, is committed to embedding sustainability and transparency into the business, investing in new technology [and] vertically integrating critical elements of the supply chain,” said Sprunk.
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