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TJX to snap up 35% stake in Dubai’s Brands for Less for USD 360 mn: US discount retailer TJX — which operates TJ Maxx and Marshalls — inked a definitive agreement to acquire a 35% stake in Dubai-based Brands for Less (BFL) for USD 360 mn (AED 1.3 bn), it said in a statement (pdf). The company touted Brands for Less as an “established, off-price retailer with significant growth potential.” The transaction is expected to close later in its fiscal year, which ends 1 February 2025.
About BFL: BFL is the region’s sole major off-price retailer, offering price reductions of up to 80% on branded apparel, toys, and home fashions. The company opened its first store in 1996 in Lebanon, but decamped and moved to Dubai a few years later. It now operates over 100 stores across seven Middle Eastern markets, as well as an e-commerce business. BLF’s enterprise value stands at USD 1.2 bn.
BFL has big expansion plans now: BFL plans to double its number of stores in the next five years, with the new support from TJX, the company’s co-founder and chairman, Toufic Kreidieh, told Bloomberg. The acquisition will grant BFL access to TJX’s 5k stores globally, fueling its expansion into new markets in the Persian Gulf and beyond, including Singapore and Malaysia.
About TJX: TJX offers brand name and designer apparel and home fashions merchandise at prices 20% to 60% lower than regular retail prices, and manages e-commerce sites. Its portfolio includes over 5k stores spanning nine countries, including TJ Maxx, Marshalls, HomeGoods, and Sierra in the US, and TK Maxx and Homesense in Europe.
ADVISORS- Dubai’s deNovo Partners served as the sole financial adviser to BFL during the transaction, while White & Case provided legal counsel. Meanwhile, BofA Securities acted as financial advisor for TJX, and Ropes & Gray offered legal counsel.
