Beaverton, Ore.-based Nike Inc. has entered into a partnership with funds affiliated with New York City-based Apollo Global Management LLC to bolster the apparel supply chain in the Americas by increasing regional manufacturing capabilities, enabling quicker delivery of more customized products to consumers and driving investment in sustainability. The partnership has established an apparel supply chain company, which has acquired two existing companies — apparel manufacturer New Holland; and embellishment, warehousing and logistics operator, ArtFX — through an investment from the Apollo-managed Special Situations I fund. The two companies will be updated and advanced to produce innovative, technical and customized apparel. The new supply chain company also plans acquire additional textile and apparel suppliers in the Americas to broaden its available products and create a vertically integrated apparel ecosystem.
“We are excited to be working with Apollo to rethink a new supply chain model to revolutionize apparel manufacturing in the Americas,” said Eric Sprunk, COO, Nike.
“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,” said Josh Harris, co-founder and senior managing director, Apollo. “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.”
September/October 2016
