Nike, Inc. (NYSE:NKE) and affiliates of Apollo Global Management (NYSE:APO) have entered into a strategic partnership regarding the apparel supply chain in the Americas, according to funds affiliated with the companies. The partnership aims to increase regional manufacturing capabilities, enable quicker delivery of more customized product to consumers and drive investment in sustainability.

To establish the 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. The new company expects to acquire additional textile and apparel suppliers in the Americas in order to broaden and diversify its capabilities and product offerings, creating a more vertically-integrated apparel ecosystem.

“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 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.”

Terms of the agreements were not disclosed, but Apollo said the new supply chain company acquired two businesses to form the cornerstone of the strategy: the apparel manufacturer New Holland and the embellishment, warehousing and logistics operator ArtFx. The investment was made by the Apollo-managed Special Situations I fund.