The TJX Cos. has completed its acquisition of Trade Secret, an offprice retailer that operates 35 stores in Australia, from Gazal Corp. for a purchase price of Australian $80 million, or about U.S. $58 million, subject to customary post-closing adjustments.
The Trade Secret acquisition, TJX stated, gives the company an opportunistic entry into Australia, where it currently operates one of its 13 buying offices.
Trade Secret carries branded apparel for women, men and children, as well as footwear, accessories and home fashions, TJX noted. The stores are located in Queensland, New South Wales, Victoria and the Capital Territory. Trade Secret launched in 1992 and since has grown to over Australian $160 million, or about U.S. $116 million, in revenue as of its fiscal year ended June 2015.
Carol Meyrowitz, TJX chairman and CEO, said, “We are very pleased to add Trade Secret to the TJX family of companies, which fits directly into our clear vision for continued global growth. Trade Secret’s business is closely aligned with ours, and this acquisition provides us with immediate scale and first-mover advantages in Australia. We believe that, similar to our successful expansion in Canada, which started with our acquisition of Winners in 1990, we can further develop Trade Secret by leveraging our off-price leadership experience, global buying scale, vendor universe, marketing, and other capabilities. As one of the few major U.S. retailers to have expanded profitably in international markets, including Canada and Europe, we are very confident in our potential to grow successfully in our third continent and eighth country.”