Staples to buy office depot full#

Staples to buy office depot full#

Staples expects to realize at least $1 billion in annual cost savings by the third full fiscal year after the transaction is complete. Sargent said that Staples will maintain a presence in Boca Raton, Florida, where Office Depot is based. Office Depot shareholders will own about 16 percent of the combined company.ДЇramingham, Massachusetts, where Staples is based, will serve as headquarters for the combined company. The companies put the dealвЂ™s equity value at $6.3 billion. The transaction values Office Depot at $11 per share, which is based on StaplesвЂ™ Monday closing stock price вЂ“ the last trading day before initial reports of a buyout began to leak. shareholders will receive $7.25 in cash and 0.2188 of a share in Staples Inc. Office Depot CEO Roland Smith said the chain is looking to close 135 stores this year. Sargent said Wednesday that those plans havenвЂ™t changed. Staples previously announced that it would close up to 225 stores by the end of 2015. While Sargent said itвЂ™s too early to talk about specific integration plans for the company, Staples and Office Depot each plan to close stores this year.

or if a requirement of the antitrust authorities has a material adverse effect on Office DepotвЂ™s operations outside of the U.S. Staples did touch on some of those monopoly issues Wednesday, saying that itвЂ™s not required to close the deal with Office Depot if antitrust authorities require divestitures that deliver more than $1.25 billion of Office DepotвЂ™s 2014 revenues in the U.S. When the FTC closed its investigation into the merger of Office Depot and OfficeMax it seemed to agree, saying that the market for the sale of consumable office supplies had changed significantly. Sargent said Wednesday that while they do not know how the Federal Trade Commission will react, a lot has changed. And it is the nod from regulators on that $1.2 billion deal in late 2013 that may be giving the companies more confidence that they now see things from their perspective.

It was slightly more than a year ago that Office Depot merged with OfficeMax for much the same reason. вЂњThis is a transformational acquisition which enables Staples to provide more value to customers, and more effectively compete in a rapidly evolving competitive environment,вЂќ said Staples CEO and Chairman Ron Sargent.Д«ig wholesalers and office supply manufacturers that will have one less company to sell products to may see it differently, said Citi Investment ResearchвЂ™s Kate McShane. That was almost 20 years ago, however, and with the boards of both companies signing on unanimously to try it again, they appear confident that their landscape has changed substantially. The two companies tried to combine forces before but were successfully blocked by anti-trust regulators. Once one-time rivals will no longer compete in close proximity for the same customers, instead putting up a front of 4,000 stores to hold off encroachments from the likes of Wal-Mart, Target and .ДЄnnual sales of the new office-supply giant are expected to approach $39 billion. NEW YORK вЂ“ There are few places where evolving technology has been more disruptive than in the workplace, which played out again Wednesday as Staples announced it would spend about $6 billion to buy Office Depot. Staples buys Office Depot for $6 billion вЂ“ Reading Eagle Close Menu