Nike and Apollo join forces on supply chain partnership
Nike is joining forces with Apollo to improve speed in its supply chain
US sporting giant Nike has formed a supply chain partnership with private-equity firm Apollo Global Management in a move designed to speed up delivery, increase regional manufacturing capabilities and drive investment in sustainability.
While terms of the agreement were not disclosed, the partnership deal has seen Apollo create an apparel supply chain company that has so far acquired two supply chain companies: apparel manufacturer New Holland; and warehousing and logistics operator ArtFX.
The plan, Nike says, is to invest in advancing its manufacturing operations and expertise to produce innovative, technical and customised apparel. The new company is expected to acquire additional textile and apparel suppliers in the Americas in order to broaden and diversify its capabilities and product offerings.
The move is designed to create a more vertically-integrated apparel ecosystem – from materials suppliers and apparel manufacturers, to final embellishment, warehousing and logistics.
"We are excited to be working with Apollo to rethink a new supply chain model to revolutionise apparel manufacturing in the Americas," says Eric Sprunk, Nike COO. "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."
Josh Harris, co-founder and senior managing director of Apollo, adds that he sees "tremendous opportunity" in meeting the rising demand for responsive apparel manufacturing.
"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."
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