US: TJX acquires Sierra Trading Post for $200m
Off-price retail group The TJX Companies has acquired online outdoor clothing, footwear and accessories retailer Sierra Trading Post as part of efforts to build its online capabilities.
Under the agreement, TJX has acquired Sierra's office, fulfilment centre and photography studios in Cheyenne, Wyoming, its customer call centres in Cheyenne and Cody, Wyoming, and its four stores in Idaho, Nevada and Wyoming for US$200m. The transaction is subject to customary post-closing adjustments.
TJX chief executive officer Carol Meyrowitz said: "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."
The company expects the deal will be slightly accretive to earnings beginning in fiscal 2014.
Peter Solomon Company and BofA Merrill Lynch acted as financial advisors, while Ropes & Gray provided legal counsel to the company.
Wyoming-based Sierra Trading Post, which employs 700 people, set up the e-commerce business in 1999.
Off-price retailer The TJX Companies expects full-year earnings per share to be at the upper end of its previous guidance after first-quarter profit rose 8%....
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