The TJX Companies has signed a definitive agreement for a joint venture with Grupo Axo, a global brands operator in Mexico and South America that includes both full- and off-price formats.

TJX will own 49 per cent of the joint venture, while Grupo Axo will own 51 per cent. The transaction is expected to be completed later this year.

The joint venture will comprise Grupo Axo’s off-price, physical store business in Mexico, which includes over 200 stores under its Promoda, Reduced, and Urban Store banners.

“With TJX’s decades of experience as an international, off-price retailer, and Axo’s established base of over 200 off-price stores and 30 years of operating experience in Mexico, we see excellent potential to grow in another region and deliver our value proposition to a growing population of fashion- and value-conscious consumers in Mexico,” said Ernie Herrman, CEO and president of The TJX Companies.

“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. We are thrilled to have the opportunity to work with them to reimagine the off-price retail experience in Mexico,” said Andrés Gómez, co-founder, chairman and CEO.

TJX does not expect the proposed joint venture to have a material impact on its previously communicated sales, profit or earnings per share guidance for the current fiscal year.

Axo’s brands are sold through more than 6900 points of sale in department stores and more than 970 boutiques in Mexico, Chile, Peru and Uruguay.