Private equity (PE) giant Apollo Global Management is betting it can build a regional apparel supply chain for Nike in the Americas, helping the Beaverton, Oregon-based sporting company to become more nimble and bring its manufacturing closer to home.
In the partnership, Apollo plans to buy apparel suppliers and textile firms in North and Central America, while also building out new manufacturing plants, warehouses and logistics networks for Nike. Already, Apollo’ s Special Situations I Fund has acquired Pennsylvania-based apparel manufacturer, New Holland, and Virginia-based textile screen printing and logistics operator ArtFX. The PE firm plans significant additional investment to create a vertically integrated manufacturing hub for Nike.
The end result, according to Apollo and Nike, is expected to be a seamless apparel ecosystem that’s more environmentally friendly, closer to home and better suited to manufacture customized products.
For Apollo, the investment is a bet on the rising demand for apparel and also on domestic manufacturing.
To read the full story, please click here.