The TJX Companies, Inc. Acquires Off-Price Internet Retailer Sierra Trading Post
FRAMINGHAM, Mass.--(BUSINESS WIRE)--Dec. 21, 2012--
The TJX Companies, Inc. (NYSE: TJX), the leading off-price retailer of
apparel and home fashions in the U.S. and worldwide, today announced
that it has acquired Sierra Trading Post, an off-price Internet retailer
based in Cheyenne, Wyoming. The purchase price of approximately $200
million, which is subject to customary post-closing adjustments, was
paid in cash and financed from TJX’s existing cash balances. TJX expects
that this transaction will 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 which launched its
e-commerce business in 1999. The company 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. As part of this transaction, TJX
acquired Sierra’s office, fulfillment center and photography studios in
Cheyenne, Wyoming, its customer call centers in Cheyenne and Cody,
Wyoming, and its four outlet stores in Idaho, Nevada and Wyoming.
Carol Meyrowitz, Chief Executive Officer of The TJX Companies, Inc.,
stated, “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. 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.”
Meyrowitz continued, “As 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.”
Peter J. Solomon Company, LLC, and BofA Merrill Lynch acted as financial
advisors and Ropes & Gray LLP provided legal counsel to the Company in
connection with this transaction.
About The TJX Companies, Inc.
The TJX Companies, Inc. is the leading off-price retailer of apparel and
home fashions in the U.S. and worldwide. The Company operates 1,039 T.J.
Maxx, 912 Marshalls, and 417 HomeGoods stores in the United States; 222
Winners, 88 HomeSense, and 14 Marshalls stores in Canada; and 344 T.K.
Maxx and 24 HomeSense stores in Europe. TJX’s press releases and
financial information are also available at www.tjx.com.
Recorded Call About the Acquisition
A recorded message with more information regarding this acquisition is
available at www.tjx.com
or by calling (703) 736-7248 through Friday, December 28, 2012.
Important Information at Website
The Company’s recorded messages and conference calls are available at www.tjx.com
after they are no longer available by telephone. The Company routinely
posts information that may be important to investors in the Investor
Information section at www.tjx.com.
The Company encourages investors to consult that section of its website
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995: Various statements made in this release are forward-looking and
involve a number of risks and uncertainties. All statements that address
activities, events or developments that we intend, expect or believe may
occur in the future are forward-looking statements. The following are
some of the factors that could cause actual results to differ materially
from the forward-looking statements: actual performance of Sierra
Trading Post, including ability to increase sales and profits and to
leverage its capabilities in TJX’s e-commerce initiative; buying and
inventory management; operational expansion and management of large size
and scale; customer trends and preferences; market, banner, geographic
and category expansion; marketing, advertising and promotional programs;
competition; personnel recruitment and retention; global economic
conditions and consumer spending; data security; information systems and
technology; seasonal influences; adverse or unseasonable weather;
serious disruptions and catastrophic events; corporate and banner
reputation; merchandise quality and safety; international operations;
merchandise importing; commodity pricing; foreign currency exchange
rates; fluctuations in quarterly operating results; market expectations;
acquisitions and divestitures; compliance with laws, regulations and
orders; changes in laws and regulations; outcomes of litigation, legal
matters and proceedings; tax matters; real estate activities; cash flow
and other factors that may be described in our filings with the
Securities and Exchange Commission. We do not undertake to publicly
update or revise our forward-looking statements even if experience or
future changes make it clear that any projected results expressed or
implied in such statements will not be realized.
Source: The TJX Companies, Inc.
The TJX Companies, Inc.
Senior Vice President