November 5, 2013

Office Depot merges with OfficeMax to create global entity

Office Depot, a global provider of office supplies and services, has successfully completed the merger with OfficeMax to create a stronger, more competitive and more efficient global provider of office products, services and solutions.

By admin-demo

Office Depot, a global provider of office supplies and services, has successfully completed the merger with OfficeMax to create a stronger, more competitive and more efficient global provider of office products, services and solutions.

The combined entity will use the name Office Depot and will trade on the New York Stock Exchange under the symbol ODP.

Under the merger deal, OfficeMax is now a wholly owned subsidiary of Office Depot, and will no longer be publicly traded.

Last week, the retailers received regulatory approval for their $976m deal.

Office Depot provides core office supplies, print and document services, business services, facilities products, furniture, and school essentials.

Office Depot, after merger, will employ about 66,000 associates worldwide and operate in 59 countries with more than 2,200 retail stores through a global network of wholly owned operations, joint ventures, franchisees, licensees and alliance partners

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The company’s portfolio of leading brands includes Office Depot, OfficeMax, OfficeMax Grand & Toy, Viking, Ativa, TUL, Foray, and DiVOGA.

According to Office Depot, the combined company would have revenue of about $17bn for the 12 months ended 28 September.

Office Depot reported third-quarter profit of $133m, compared to a loss of $70m in the same period last year.

Adjusted earnings for the quarter was $18m. Sales dropped 3% to $2.6bn from $2.69bn last year.

Office Depot chairman and chief executive officer Neil Austrian said the company was able to deliver these results while continuing to make progress with the integration planning for the pending merger with OfficeMax.

"Although we experienced some weakness in July, we had a relatively strong back-to-school season this year as evidenced by sales increases in our school supplies categories and K-12 education customers," Austrian added.