Framingham, Mass. & Boca Raton, Fla. — Staples, Inc. and Office Depot, Inc. have entered into a definitive agreement under which Staples will acquire all of the outstanding shares of Office Depot.
Staples began discussions to acquire Office Depot in September 2014. The agreement has been unanimously approved by each company’s board of directors.
With the acquisition of Office Depot, Staples will have pro forma annual sales of approximately $39 billion.
“This is a transformational acquisition which enables Staples to provide more value to customers, and more effectively compete in a rapidly evolving competitive environment,” says Ron Sargent, Staples’ chairman and chief executive officer. “We expect to recognize at least $1 billion of synergies as we aggressively reduce global expenses and optimize our retail footprint. These savings will dramatically accelerate our strategic reinvention which is focused on driving growth in our delivery businesses and in categories beyond office supplies.”
“This transaction delivers great value for our shareholders and creates a company ideally positioned to serve our customers and grow over the long term,” says Roland Smith, chairman and chief executive officer for Office Depot, Inc. “It is also an endorsement of our many accomplishments and the tremendous success we’ve had integrating Office Depot and OfficeMax over the past year. We look forward to bringing our experience and knowledge to the new organization.”
Following the closing of the transaction, Staples’ newly constituted board of directors will increase in size from 11 members to 13 members and include two Office Depot directors approved by Staples. Staples’ corporate headquarters will remain in Framingham, Mass., and Sargent will continue to serve as Staples’ chairman and CEO.
The transaction is subject to customary closing conditions.
SOURCE: Staples, Inc.