TJX buys Sierra Trading Post for $200M
FRAMINGHAM, Mass. (AP) — The TJX Companies Inc. said Friday that it has bought discount online retailer Sierra Trading Post for $200 million in cash.
The owner of the T.J. Maxx, Marshalls and HomeGoods said the deal will expand its online business. The international retailer is in the midst of developing online shopping sites for its own brands and said the acquisition adds scale and infrastructure in e-commerce that can benefit its business.
Sierra Trading Post, based in Cheyenne, Wyo., is a privately held company that sells clothing, shoes and other goods, primarily online. Its products tend to cater toward the outdoor lifestyle of the western U.S. It has annual revenue of roughly $200 million. The deal includes its main office, fulfillment center, photography studios, customer call centers and four outlet stores.
TJX said the acquisition of Sierra Trading Post will add slightly to earnings beginning in fiscal 2014.
Peter J. Solomon Company LLC, and BofA Merrill Lynch acted as financial advisers, and Ropes & Gray LLP provided legal counsel on the deal.
Shares fell 49 cents to $41.86 by early afternoon, in line with the broader market. Its shares have traded between $31.72 and $46.67 in the past 52 weeks.