Nike Forms Supply-Chain Pact With Apollo
August 18 2016 - 7:05PM
Dow Jones News
By Josh Beckerman
Nike Inc., which has struggled with logistics issues recently,
said it has formed a supply-chain partnership with private-equity
firm Apollo Global Management LLC.
Under the alliance, a new apparel supply chain company has
purchased existing Nike apparel suppliers in North and Central
America and will buy more to "create a more vertically integrated
apparel ecosystem."
The new business has purchased apparel maker New Holland as well
as embellishment, warehousing and logistics business ArtFX. Nike
hasn't made a capital investment in the entity.
Nike's logistics issues have included complaints by some
retailers of product delays in 2015. Nike opened a
2.8-million-square-foot distribution center in Memphis in June
2015.
The company's other recent supply-chain-focused moves have
included a partnership with Flextronics International Ltd. on areas
like automation and customization. In May, Nike expanded its
European Logistics Campus in Belgium to "accelerate the company's
drive toward the supply chain of the future."
Shares of Nike, down 8.5% this year, closed up 35 cents to
$57.21 on Thursday.
Sara Germano and Shasha Dai contributed to this article.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
August 18, 2016 18:50 ET (22:50 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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