The purchase is Lever Style’s seventh acquisition following its public listing in 2019 and aligns with its focus on fashion.
Explaining the reasons for reaching the asset purchase agreement, Lever Style said it has responded to a weaker organic business environment by focusing more on inorganic growth via acquisitions. The company is facing market difficulties that include tariffs affecting sales in the US and ongoing slow growth in Europe.
"Bad times are the best times to buy" said Stanley Szeto, executive chairman of Lever Style. "This acquisition strengthens our activewear expertise and enables us to deliver greater value to our clients across an even broader range of product categories."
This year, Lever Style faces operating conditions it considers its most challenging since the Covid-19 pandemic. In response to a possible US recession linked to tariffs in 2026, Lever Style said it has tightened credit terms and has reduced volumes with its two largest customers since 2024 due to concerns about credit risk.
As such, 2025 will represent a step back from the consecutive robust growing business trend in recent years. The group will continue to explore strategic merger and acquisition opportunities to further strengthen its product category portfolio, expand its production base, and gain scale that creates synergies and incremental profitability, said Lever Style.
AAG’s activewear segment remains its fastest-growing division within apparel. Both companies serve customers at similar tiers and product types. Lever Style plans to extend its offerings to AAG clients and seeks efficiency improvements through increased scale.
AAG has operated for 38 years as an apparel manufacturer, working with international brands and producing activewear, outerwear, and swimwear.
It supplies products at a similar category and customer level as Lever Style, which allows the combined entity to offer more products across categories and adjust its cost base.
AAG also provides manufacturing services to technical and lifestyle clothing brands including Bandit Running, Johnnie-O, Greyson, Sun Day Red, and Boggi. In 2000, it agreed to acquire Everlast in a stock and cash deal valued at about $60m.
Lever Style manufactures activewear and performance apparel for global brands such as Arc'teryx, Columbia Sportswear, Helly Hansen, Spanx, Skims, and J Lindeberg. It also works with premium and contemporary labels including Alexander Wang, Theory, Todd Snyder, Bonobos, Ministry of Supply, and others.
The initial purchase price has been set at $13m. Of this amount, Lever Style will pay 70% on the closing date, using its own cash resources for the payment.
The sale includes two categories of AAG assets: those based in Australia and ones in the US. The assets consist mainly of purchase orders, accounts receivable, and asset records connected to AAG's operations.
