The TJX Companies, Inc., an off-price apparel and home fashions retailer in the US and internationally, has declared its global expansion by entering into a classic agreement for a shared venture with Grupo Axo, S.A.P.I. de C.V., an operator of international brands around Mexico and South America including both full- and off-price formats.
As per the terms of the agreement, TJX would cling to a 49 per cent stake while Axo would have 51 per cent of the combined venture. This undertaking would comprise Axo’s present off-price, physical store business in Mexico, including more than 200 stores under its Promoda, Reduced, and Urban Store banners.
The planned transaction, estimated to end later this year, is subject to valid antitrust clearance in Mexico and other usual closing conditions. The financial terms will be revealed post-closing.
Ernie Herrman, Chief Executive Officer (CEO) and President of The TJX Companies, Inc., shared excitement, stating, “As the universal leader in off-price apparel and home fashions retail, we are excited to expand into Mexico via our partnership with Axo, and improve the foremost off-price retail presence in the country.”
Andrés Gómez, Co-Founder, Chairman & CEO of Axo, repeated the sentiment, sharing, “We couldn’t have found a better partner for our off-price physical store business than TJX, the primary off-price retailer of apparel and home fashions globally. We look forward to partnering with them to reevaluate the off-price retail setting in Mexico.”
TJX predicts that this planned transaction will have no major impact on its previously communicated sales, profit, or earnings per share guidance for its existing FY 2025.
Axo, a well-known multi-brand and multi-channel retailer in apparel, fashion accessories, footwear, beauty, and personal care categories, possesses a brand portfolio sold around more than 6,900 points of sale in department stores and in excess of 970 boutiques in Mexico, Peru, Chile, and Uruguay.
BofA Securities is helping as the financial advisor, while Ropes & Gray LLP is offering legal counsel to the Company for this contract.
