TJX launching joint venture with Mexican firm, establishing presence in Latin America

Photo | Grant Welker The TJX Cos. headquarters in Framingham

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Framingham-based retail parent TJX Cos. is set to establish a presence south of the border, as the company has entered into a definitive agreement to establish a joint venture with Grupo Axo, S.A.P.I. de C.V, a Mexican apparel company with a large presence in Latin America.

The proposed transaction, expected to close later this year, will see TJX own 49% of the venture, while Groupo Axo will own 51%, according to a press release issued by TJX on Friday. Axo operates more than 200 stores in Mexico and has retail operations in Chile, Peru, and Uruguay.

“As the world’s retail leader in off-price apparel and home fashions, we are excited about the opportunity to expand to Mexico through our partnership with Axo, and grow and enhance that country’s leading off-price retailer,” Ernie Herrman, CEO and president of TJX, said in the press release.

Groupo Axo has 9,000 employees and more than 50 brands, according to its website.

“We could not have found a better partner for our off-price physical store business than TJX, the leading off-price retailer of apparel and home fashions worldwide,” Andrés Gómez, co-founder, chairman, and CEO of Groupo Axo, said in the press release. “We are thrilled to have the opportunity to work with them to reimagine the off-price retail experience in Mexico.”

The financial terms of the deal will be announced following its closing. The transaction is subject to antitrust approval by Mexican officials and other closing conditions.

Founded in 1987, TJX operates brands that include Marshalls, TJ Maxx, and HomeGoods. The company has a presence in the United States, Canada, Australia, and several European countries.