Affiliates of Apollo Global Management and NIKE, Inc. Announce Strategic Partnership for Apparel Manufacturing in the Americas
August 18 2016 - 4:15PM
Business Wire
Funds affiliated with Apollo Global Management, LLC (NYSE:APO)
(together with its consolidated subsidiaries, “Apollo”) and NIKE,
Inc. (NYSE:NKE) today announced that Nike and affiliates of Apollo
have entered into a strategic partnership regarding the apparel
supply chain in the Americas. This innovative strategic partnership
will increase regional manufacturing capabilities, enable quicker
delivery of more customized product to consumers, and drive
investment in sustainability.
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To establish the strategic partnership, a new apparel supply
chain company has acquired existing apparel suppliers in North and
Central America and plans to invest in advancing their
manufacturing operations and expertise to produce innovative,
technical and customized apparel. In addition, this new company
expects to acquire additional textile and apparel suppliers in the
Americas in order to broaden and diversify its capabilities and
product offerings. This will 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 revolutionize apparel manufacturing in the
Americas,” said Nike Chief Operating Officer, Eric Sprunk. “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,
said, “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.
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.”
While terms of the agreements were not disclosed, Apollo today
announced the new supply chain company has acquired two businesses
to form the cornerstone of this strategy: the apparel manufacturer,
New Holland; and the embellishment, warehousing and logistics
operator, ArtFX. The investment is made by the Apollo-managed
Special Situations I fund.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world’s leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly-owned NIKE, Inc. subsidiary brands
include Converse, which designs, distributes and licenses casual
sneakers, apparel and accessories; and Hurley, which designs and
distributes a line of action sports and youth lifestyle apparel and
accessories. For more information, NIKE, Inc.’s earnings releases
and other financial information are available on the Internet at
http://investors.NIKE.com and individuals can follow @NIKE.
About Apollo Global Management LLC
Apollo Global Management, LLC (NYSE: APO) (together with its
consolidated subsidiaries, "Apollo") is a leading global
alternative investment manager with offices in New York, Los
Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt,
Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and
Shanghai. Apollo had assets under management of approximately $186
billion as of June 30, 2016 in private equity, credit and real
estate funds invested across a core group of nine industries where
Apollo has considerable knowledge and resources. For more
information about Apollo, please visit www.agm.com.
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For media inquiries regarding NIKE, Inc.:Global
CommunicationsSabrina Oei, 503-532-0464orFor investor relations
inquiries regarding NIKE, Inc.:Investor RelationsNitesh Sharan,
503-532-2828orFor investor inquiries regarding Apollo:Apollo Global
Management, LLCGary M. Stein, 212-822-0467Head of Corporate
Communicationsgstein@apollolp.comorNoah Gunn, 212-822-0540Investor
Relations Managerngunn@apollolp.comorFor media inquiries regarding
Apollo:Rubenstein Associates, Inc. for Apollo Global Management,
LLCCharles Zehren, 212-843-8590czehren@rubenstein.com
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