TJX Buys Sierra Trading Post for $200 Million
On Friday, TJX , announced it has paid approximately $200 million to acquire privately held popular Internet retailer Sierra Trading Post. TJX noted that while it expects the purchase to be accretive to fiscal 2014 earnings (the company's currently in the middle of its fiscal Q4 2013 quarter ), the amount of extra earnings will not be "material."
TJX noted in a statement that Sierra Trading Post generates more than $200 million in sales annually, and is profitable. As a result, TJX is paying about the equivalent of annual sales for the company, a significant discount to TJX's own valuation of 1.2 times annual sales.
TJX shares were down slightly less than the rest of the market today, off 0.8% at $42 per share.
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