Staples Sale: Company Agrees To Deal With Private Equity Firm

FRAMINGHAM, MA — The office supply retail giant Staples has worked out a deal to sell the company for $6.9 billion to a private equity firm, the company announced on Wednesday. Sycamore Partners announced that it has entered into a merger agreement in which investment funds managed by Sycamore Partners will acquire the company in a transaction that values Staples at an equity value of approximately $6.9 billion.

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 percent to the 10-day volume weighted average stock price for Staples shares for the period ended April 3, the last trading day prior to widespread media speculation about a potential transaction, said the release.

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 and is expected to close no later than December.

“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,” Stefan Kaluzny, managing director of Sycamore Partners, said in a statement. “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.”

Staples was blocked last year from merging with competing Office Depot.

“The Sycamore Partners’ team shares Staples’ entrepreneurial spirit and long-term vision,” Shira Goodman, Staples' chief executive officer and president, said in a statement. “This transaction will enable us to drive greater value for our customers and immense opportunity for our business.”

Photo via Staples