Nike, Under Armor, and Adidas have teamed up to buy out more than $1.5 billion in companies that have failed over the past year.
With Adidas announcing its buyout of Under Armour and Nike saying it’s giving away millions of pairs of Adidas shoes, there are signs that the brands are starting to re-emerge as one of the most prominent companies in the apparel industry.
The deals will include Nike, Nike Air, Under Armour, Undertow, Underwater, and Under Armour Elite brands.
Nike and Adidas will each give away about $1 million in total, according to the Associated Press.
Nike, however, said in a statement that the deals will be focused on the brands that are best positioned to succeed in the future.
“Under Armour is a leader in the global apparel market,” the company said.
“As a result of the acquisition, we are creating a brand that can be a catalyst for growth and long-term sustainability.”
Under Armour has struggled to grow in the past few years, with the brand failing to capture the market share it once had and shedding employees and brands to focus on the NFL and NBA.
It also struggled to rebrand its brands to compete with more mainstream brands such as Nike and Underarmour.
As of Tuesday, Underarmor was down to more than 9,000 employees and under a $1bn debt load.
Under Armour’s share price has been on a tear over the last several years.
The company recently posted record revenue for the first quarter, and has reported earnings of $3.9 billion for the year ending March 31.
But the company has also seen revenue shrink as people flock to online shopping platforms like Amazon and Alibaba.
In the last year, the company lost a total of 6,300 jobs, and it said it expects to lose another 7,700 as it shifts from the traditional clothing business to online retailers like Amazon.
According to Bloomberg, the new deal is one of several that Nike and other brands are trying to secure as they look to boost sales and earnings.