The sportswear industry is experiencing a seismic shift as 2025 continues to deliver an unprecedented wave of consolidation. After covering the market for nearly two decades, I’ve rarely witnessed such a concentrated period of high-value acquisitions reshaping the competitive landscape. The first half of 2025 has already recorded $14.2 billion in completed deals across the active lifestyle sector, according to data from PitchBook, marking a 37% increase from the same period last year.
Behind these eye-popping numbers lies a strategic recalibration as major players position themselves for what industry analysts are calling “the new fitness economy”—a convergence of traditional apparel manufacturing with digital fitness platforms, direct-to-consumer distribution models, and sustainability initiatives. The motivations driving this M&A surge reveal deeper truths about where the industry is heading.
“What we’re seeing isn’t merely consolidation for market share,” explains Maria Chen, senior retail analyst at Morgan Stanley. “These acquisitions reflect a fundamental restructuring of how fitness brands deliver value in a post-pandemic world where digital engagement and sustainability have become non-negotiable components of consumer expectations.” Chen’s analysis aligns with my observations covering quarterly earnings calls, where executives increasingly frame acquisitions in terms of capability expansion rather than simple geographic growth.
The largest deal finalized this quarter—Adidas’s $3.8 billion acquisition of fitness technology platform FitSphere—exemplifies this trend. The German sportswear giant gains not just FitSphere’s 18.7 million active users but also its proprietary algorithm that personalizes workout recommendations based on performance data. This transaction represents a 4.2x revenue multiple, according to SEC filings, significantly higher than the 2.8x industry average for traditional apparel acquisitions.
During my interview with Adidas CFO Thomas Schaefer last month, he emphasized that the premium valuation reflects the strategic importance of customer data. “We’re not just acquiring users; we’re acquiring insights that will inform product development across our entire portfolio,” Schaefer told me. “The ability to understand how consumers actually use our products creates a feedback loop that traditional retail channels simply cannot provide.”
Data from McKinsey & Company suggests companies implementing such feedback systems achieve 23% higher product adoption rates and 17% better customer retention. These metrics help explain why traditional sportswear manufacturers are paying premium prices for technology assets that might otherwise seem tangential to their core business.
The second most significant transaction, VF Corporation’s $2.1 billion purchase of sustainable athletic wear brand EcoMotion, carries a different strategic signature. This acquisition gives the parent company of The North Face and Vans a stronger position in the rapidly growing eco-conscious segment, which has expanded at 16.4% annually compared to 7.2% for the broader sportswear market, according to research from NPD Group.
“The sustainability premium is real and growing,” says Thomas Jenkins, chief sustainability officer at VF Corporation. “Our consumer research indicates 64% of buyers under 35 now consider environmental impact a primary purchase factor, up from just 41% in 2022.” Jenkins’ observation tracks with Federal Reserve data showing an 18% average price premium for certified sustainable athletic apparel in the first quarter of 2025.
What makes this deal particularly noteworthy is EcoMotion’s proprietary fabric technology that reduces water usage by 76% compared to conventional production methods. The company has secured 14 patents related to water-efficient dyeing processes, assets that could provide significant manufacturing advantages across VF’s entire brand portfolio.
Not all recent transactions have focused on technology acquisition. Private equity firm Blackstone’s $1.7 billion purchase of specialty retailer RunCompass represents a different strategic calculation—betting on the continued growth of the running category despite broader retail headwinds. With 127 brick-and-mortar locations and an e-commerce platform that grew 42% last year, RunCompass offers Blackstone exposure to the premium end of the market where margins have remained resilient.
“Specialty retail in the running category has demonstrated remarkable resistance to broader e-commerce pressures,” explains Sarah Williams, retail sector head at Deloitte. “The average RunCompass customer spends 3.8 times more annually than customers who shop primarily through general sporting goods retailers, justifying the 12.5x EBITDA multiple Blackstone paid.”
My analysis suggests this premium valuation reflects confidence in the running category’s projected 9.3% CAGR through 2028, substantially outpacing the 5.7% growth forecast for the broader sportswear market, according to Euromonitor International.
In the mid-market segment, Japanese sportswear manufacturer Asics completed its acquisition of yoga apparel brand ZenFlex for $865 million, representing a strategic move to diversify beyond its running-focused portfolio. This transaction provides Asics immediate entry into the $18.4 billion yoga apparel market, which continues to expand even as other fitness categories show signs of post-pandemic normalization.
“The ZenFlex acquisition immediately gives us credibility in a category where we’ve historically been underrepresented,” Asics North America President Koichiro Kodama explained during an analyst call I attended in April. “Their design expertise and established customer base would have taken us years to develop organically.”
Not all 2025 sportswear deals reflect pure growth strategies. Under Armour’s divestiture of its connected fitness division to Apple for $780 million represents a strategic retreat from digital offerings to refocus on its core apparel business. This transaction, finalized in March, ends Under Armour’s eight-year experiment with fitness tracking technology that never fully integrated with its apparel development pipeline.
“Sometimes the smartest M&A move is knowing when to sell, not just what to buy,” observes Jennifer Crawford, managing director at Goldman Sachs’ consumer retail division. “Under Armour’s decision to monetize their digital assets allows them to redirect approximately $115 million in annual technology investment toward product innovation and marketing initiatives that more directly support their apparel and footwear segments.”
The transaction values Under Armour’s connected fitness division at approximately 3.2x revenue, significantly below the 5.8x multiple Apple paid for similar assets in previous acquisitions, suggesting Under Armour’s urgency to complete the divestiture.
Looking ahead to the remainder of 2025, several pending deals signal continued consolidation. Nike’s proposed $4.2 billion acquisition of direct-to-consumer fitness equipment manufacturer TechFit is currently under FTC review, with analysts expecting approval by Q4. Meanwhile, industry rumors suggest Lululemon is in advanced talks to acquire European active lifestyle brand SportLogic for approximately $1.9 billion, though neither company has confirmed these discussions.
What makes this wave of sportswear consolidation particularly noteworthy is how it reflects broader economic currents. With the Federal Reserve maintaining interest rates at 4.75% following last month’s decision, access to capital remains relatively constrained compared to the previous decade. This environment typically favors larger strategic acquirers with strong balance sheets over financial buyers reliant on leverage.
“The current M&A landscape rewards companies with clear strategic vision and the financial strength to execute without excessive debt,” explains Robert Chen, partner at Bain & Company’s retail practice. “We’re seeing multiples compress for growth-stage companies without clear profitability paths, while established brands with proven unit economics continue to command premium valuations.”
This perspective aligns with my observations covering quarterly earnings calls this season, where executives increasingly emphasize immediate synergy realization rather than long-term growth potential when justifying acquisition prices to increasingly skeptical analysts.
As 2025 progresses, the sportswear industry’s transformation through M&A activity will likely continue reshaping competitive dynamics, with technology integration and sustainability capabilities emerging as the primary value drivers. For investors, understanding these strategic motivations—beyond simple market share calculations—has become essential for evaluating the long-term implications of this unprecedented wave of industry consolidation.
