Sycamore Partners to buy office supplies retailer Staples for $6.9bn
Private equity firm Sycamore Partners has signed an agreement to acquire US-based office supplies retailer Staples in a $6.9bn deal.
Under the terms of the agreement, Sycamore will buy the common stock of Staples for $10.25 a share.
Staples board chairman Robert Sulentic said: “Today’s announcement is the result of a comprehensive process in which our board, with the assistance of a transaction committee comprised of independent directors, and outside financial advisors, explored and considered various alternatives to enhance value for our stockholders.
“Staples’ board believes that this process has led to a transaction which is in the best interests of our stockholders, as well as Staples and its employees.”
Scheduled to close by December, the transaction is subject to customary closing conditions, including the receipt of regulatory and stockholder approval.
Staples president and CEO Shira Goodman said: “This transaction will enable us to drive greater value for our customers and immense opportunity for our business.”
A number of financial organisations, including UBS Investment Bank, Deutsche Bank, Credit Suisse and Royal Bank of Canada will provide debt financing for the transaction.
Staples operates more than 1,500 stores in the US and Canada.
Last year, Staples had to abort a proposed merger with office supplies retailer Office Depot after a US judge ruled in favour of the federal trade commission (FTC), which filed a lawsuit on the grounds of anti-trust concerns.
Image: A location at the Savi Ranch Center in Yorba Linda, California. Photo: courtesy of Vercillo via Wikipedia.