Hong Kong-based apparel manufacturer Lever Style Corp. is once again expanding its operations with the acquisition of Australia- and California-based Active Apparel Group. This will be Lever Style’s seventh acquisition since its initial public offering in 2019.
Lever Style manufactures apparel across a number of categories, including activewear and performance apparel. In that category, the company works with brands such as Arc’teryx, Columbia Sportswear, Helly Hansen, Spanx, Skims and J.Lindeberg. Lever Style also works with a broad portfolio of premium and contemporary brands including Alexander Wang, Theory, Todd Snyder and others, as well as digitally native brands such as Bonobos and Ministry of Supply.
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AAG manufactures activewear for more than 20 brands, including Johnny Was, Phillip Lim, Peloton and Summersalt. The company also has 352,000 square feet of factory capacity in China, according to its website. AAG has offered additional production services such as patternmaking, sampling and digital printing.
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“Active Apparel Group’s activewear segment is the fastest-growing one in the apparel industry, and it complements our existing strength in the fashion segment,” said Stanley Szeto, executive chairman of Lever Style Corp., in a statement. “AAG’s product sophistication and customer tier are also on par with Lever Style’s premium positioning, enabling cross-selling opportunities in other product categories and enhancing operating leverage.”
According to the acquisition filing, Lever Style agreed to pay $13 million for AAG’s assets. The pickup comes two years after Lever Style acquired Elegant Team Development — which primarily manufactures outdoor apparel — for $4.8 million.
In its acquisition announcement, Lever Style admitted that 2025 has been its most challenging year, due to tariffs enacted by President Donald Trump’s administration and war in Europe. The company said that “given the increasing risk of tariff-induced U.S. recession in 2026, we have further tightened credit controls, significantly reducing business volumes with two of our largest customers from 2024 due to credit concerns.”
With that in mind, Lever Style said it has put more focus on pursuing inorganic growth.
“Bad times are the best times to buy,” Szeto said. “This acquisition strengthens our activewear expertise and enables us to deliver greater value to our clients across an even broader range of product categories.”
Lever Style said after this acquisition and recently paid interim dividends, the company still has a significant net cash position that could facilitate additional acquisitions going forward.