First published: 22-Aug-2024 08:08:11

Staff Writer

The owner of American retail giant TJ Maxx is acquiring a significant stake in Dubai-based off-price chain Brands for Less (BFL), as part of its global expansion strategy.

The TJX Companies, which just raked in net sales of more than $13 billion, has signed a definitive agreement to own a 35% stake in BFL for approximately $360 million, subject to customary working capital adjustments, it said in a statement on Wednesday.

With a portfolio of 100 stores primarily in the UAE and Saudi Arabia, BFL is the only major off-price branded apparel, toys and home fashions retailer in the region.

The transaction, which is slated to close later this year, will mark the American retailer’s entry into the Middle East market. The investment represents a non-controlling, minority position in BFL, the firm said.

“As TJX seeks to continue its global growth, this transaction gives the company an opportunity to invest in an established, off-price retailer with significant growth potential,” the company said.

“The company’s ownership in BFL is expected to be slightly accretive to earnings per share beginning in fiscal 2026.”

The BFL Group operates stores in the UAE, Saudi Arabia, Qatar, Bahrain Kuwait, Malta and Oman, according to its website.

TJX Companies reported net sales of $13.5 billion for the second quarter of fiscal 2025, up by 6% from the second quarter of fiscal 2024.

(Writing by Cleofe Maceda; editing by Seban Scaria) 

seban.scaria@lseg.com

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