TJX enters into JV with Mexico’s Grupo Axo

As per the agreement, TJX will hold a 49% stake in the joint venture, while Axo will have a 51% stake in the venture. The collaboration will incorporate Axo's existing off-price, brick-and-mortar retail operations in Mexico, encompassing more than 200 stores under its Promoda, Reduced and Urban Store brands.

The envisioned transaction is slated to be completed toward the end of 2024. The value of the deal was not disclosed.

The TJX Companies is keen on extending its presence into Mexico through the partnership with Axo, aiming to amplify and refine its performance. Drawing upon TJX's extensive experience as a global off-price retailer, coupled with Axo's established network of more than 200 off-price stores and three decades of operational expertise in Mexico, management envisions significant potential for growth in this new region.

This leading off-price apparel and home fashion retailer anticipates delivering a compelling value proposition to the expanding demographic of fashion-forward and value-conscious consumers in Mexico.

TJX was advised on the joint venture in Mexico by law firm Galicia.

“This transaction was significant because it marks TJX's first direct investment in Mexico, enabling the company to establish a presence in the country's off-price retail sector,” the law firm said.

Galicia’s team advising TJX was led by partner José Visoso, with tax partner Federico Scheffler  and M&A associates Ma. Fernanda Luna and Florencio Madariaga.

TJX’s in-house counsel was Elizabeth Black, while Simpson Thacher & Bartlett in the US and Creel, García Cuellar, Aiza y Enríquez in Mexico acted as counsel to Grupo Axo.