TJX Acquires Sierra Trading Post
FRAMINGHAM, Mass-The TJX Companies, Inc., 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 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.
"We are very pleased with the addition of Sierra Trading Post to the TJX family," said Carol Meyrowitz, chief executive officer of the TJX Companies. "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."