TJX Cos. acquires Internet off-price retailer Sierra Trading Post
December 26, 2012-- Home Textiles Today,
Framingham, Mass. - Off-price retail chain The TJX Companies Inc. has acquired Sierra Trading Post, an off-price Internet retailer based in Cheyenne, Wyoming.
The purchase price was about $200 million, which is subject to customary post-closing adjustments, and was paid in cash and financed from TJX's existing cash balances.
TJX said it expects this transaction to be "slightly accretive to earnings beginning in fiscal 2014, but that this impact will not be material to TJX's consolidated financial statements."
Sierra Trading Post is a privately held company that launched its e-commerce business in 1999. It has successfully grown its business to over $200 million in annual revenue, is profitable, and has a strong organization of approximately 700 associates with substantial e-commerce experience and expertise, TJX noted. ‘
As part of this transaction, TJX acquired Sierra's office, fulfillment center and photography studios at its headquarters as well as its customer call centers in Cheyenne and Cody, Wyoming, and its four outlet stores in Idaho, Nevada and Wyoming.
"We are very pleased with the addition of Sierra Trading Post to the TJX family. We continue to plan on launching e-commerce sites for TJX brands and this acquisition adds immediate scale, capabilities and infrastructure in e-commerce, which we can leverage in that regard," said Carol Meyrowitz, ceo. "We believe we will be able to build upon this platform as we continue to develop our e-commerce strategy. Further, we are confident that TJX can help grow the Sierra business profitably through our buying scale, marketing and our other capabilities."
She added that also being an off-price online retailer, Sierra Trading Post "shares many characteristics with TJX. As we do, Sierra offers branded apparel, footwear and home furnishings at great values, has a very loyal customer base, strong vendor relationships, and operates with a low cost structure. We also see Sierra's management team, with their deep Internet retailing experience, as a complement to the strong e-commerce team we have built within TJX. Further, we see the organization and company culture at Sierra Trading Post as a great fit with our own. The addition of Sierra Trading Post further strengthens our opportunities for growth and we welcome its management team and organization to the TJX family of companies."
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