The TJX Companies, Inc., parent company of several off-price stores including, HomeGoods, Marshalls and T.J. Maxx, announced yesterday it will acquire Trade Secret, an off-price retailer operating in Australia, from Gazal Corporation Limited.
The company bought Trade Secret for $80 million Australian dollars ($58.4 million).
This acquisition will provide TJX an opportunity to enter the Australian market, where the company currently operates one of its 13 buying offices.
“We are excited about the anticipated addition of Trade Secret to the TJX family of companies and expanding to another continent, which underscores the strength of our international growth opportunities,” TJX chairman Carol Meyrowitz, said. “TJX is one of the few major U.S. retailers to have expanded successfully in international markets, including Canada and Europe, which gives us confidence in our potential growth in Australia.”
The retailer offers apparel for women, men and children, along with footwear, accessories and home fashions, with locations in the eastern part of Australia. Since its first store opened in 1992, it has grown to $164.5 million Australian dollars ($120.1 million) in revenue for the 2015 fiscal year, which ended in June.
“With consumer demographics similar to Canada, we see Trade Secret as a strong platform to grow in Australia similar to how we entered Canada with our acquisition of Winners in 1990 and grew that business into a leading Canadian retailer,” Meyrowitz added. “We believe TJX can further develop Trade Secret by leveraging our international leadership experience, buying scale, vendor universe, marketing, and other capabilities. We view Trade Secret as a good fit with our own corporate culture and are looking forward to growing this business for the future.”
TJX expects the transaction to be completed by the end of 2015.