TJ Maxx Owner Gets Middle East Access with Brands for Less | kbnmart

TJ Maxx, the owner of TJ Maxx, has acquired a 35% stake in Dubai-based Brands For Less for $360 million, giving the American discount retailer access to fast-growing consumer markets in the Middle East.

TJX Cos. is buying the company for a total value of $1.2 billion, according to a company statement. Brands for Less said TJX, which has 5,000 stores worldwide, will support the company’s expansion in the Gulf and beyond, including India, Malaysia and Singapore.

The deal is the latest sign of strong merger and acquisition activity in the region, as oil-exporting nations such as the United Arab Emirates and Saudi Arabia spend heavily to diversify their economies and attract foreign investors.

Brands for Less opened its first store in Lebanon in 1996 but moved a few years later to Dubai, which at the time was in the early stages of becoming the region’s leading financial hub.

The company now has over 100 stores in seven markets across the Middle East, selling everything from clothing and homeware to toys at discounts of up to 80% off the original retail price of well-known brands.

That model has served the company well during recessions, including the Covid pandemic, Toufic Kreidieh, CEO and co-founder of Brands for Less, said in an interview. With TJX’s support, the company aims to double the number of stores it operates in the next five years, he added.

Kredi described shopping for discount brands as a “treasure hunt,” and said companies like Brands for Less are recession-proof. “Here we present ourselves as a real solution,” he said, because consumers would rather buy discounted brands than not buy them at all.

deNovo Partners in Dubai acted as sole financial advisor while White & Case provided legal advice to Brands for Less.