Friday December 21st, 2012 - 3:19PM
Sierra Trading Post, an offprice Internet retailer based in Cheyenne, WY, now is part of The TJX Cos, Inc. The traditional offpricer purchased the Internet operation for $200 million, subject to customary post-closing adjustments, TJX announced.
The company paid the purchase in cash and financed it from existing cash balances, TJX stated. The transaction will be slightly accretive to earnings beginning in fiscal 2014, TJX asserted, but added that the impact will not be material to TJX’s consolidated financial statements.
Privately-held, until now, Sierra Trading Post launched its e-commerce business in 1999. The company is profitable and has an organization of about 700 associates with substantial e-commerce experience and expertise, TJX noted. As part of this transaction, TJX said it acquired Sierra’s office, fulfillment center and photography studios in Cheyenne, its customer call centers in Cheyenne and Cody, WY, and its four outlet stores in Idaho, Nevada and Wyoming.
Carol Meyrowitz, TJX CEO said, in commenting on the transaction, “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.
“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.”