Staples To Be Acquired For Approximately $6.9 Billion

Framingham, Mass., and New York City — On June 29, 2017, Staples, Inc. and Sycamore Partners, a leading private equity firm, entered into a merger agreement in which investment funds managed by Sycamore Partners will acquire Staples for approximately $6.9 billion. 

Under the terms of the merger agreement, all Staples stockholders will receive $10.25 per share in cash for each share of common stock they own, which represents a premium of approximately 20% to the 10-day volume weighted average stock price for Staples shares for the period ended April 3, 2017, the last trading day prior to widespread media speculation about a potential transaction.

Staples' board of directors has unanimously approved the merger agreement and recommends that all Staples stockholders vote in favor of the transaction.

The transaction is subject to customary closing conditions, including the receipt of regulatory and stockholder approval, and is expected to close no later than December 2017. The closing is not subject to a financing condition.

"With an iconic brand, a winning strategy and dedicated and passionate associates who are deeply focused on the customer, Staples is truly an outstanding enterprise," says Stefan Kaluzny, managing director of Sycamore Partners. "We have tremendous confidence in CEO Shira Goodman and great respect for the Staples management team and are excited about this opportunity to partner with them to accelerate long term profitability."

Barclays and Morgan Stanley & Co. LLC are acting as financial advisors and Wilmer Hale LLP is acting as legal advisor to Staples.

UBS Investment Bank, BofA Merrill Lynch, Deutsche Bank, Credit Suisse, Royal Bank of Canada, Jefferies, Wells Fargo Bank, National Association and Fifth Third Bank are providing debt financing for the transaction. BofA Merrill Lynch and Deutsche Bank Securities Inc. are acting as financial advisors and Kirkland & Ellis LLP is acting as legal advisor to Sycamore Partners.

Headquartered outside of Boston, Staples, Inc. operates primarily in North America. For more information, visit www.staples.com.

Sycamore Partners is a private equity firm based in New York specializing in consumer and retail investments. The firm has more than $3.5 billion in capital under management. The firm's investment portfolio currently includes Belk, Coldwater Creek, EMP Merchandising, Hot Topic, MGF Sourcing, NBG Home, Nine West Holdings, Talbots, The Limited and Torrid.

SOURCE: Staples, Inc.

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