Office product retailer Staples is being acquired by private equity firm Sycamore Partners for $6.9 billion, or $10.25 per share.
The acquisition will occur approximately one year after federal regulators prohibited Staples from purchasing rival Office Depot. Soon thereafter, Staples named Shira Goodman as it new CEO. Goodman is expected to retain her position after the buyout is completed later in 2017.
According to Axios, the $10.25 per share price is higher than Staples has traded for during most of the last two years, but significantly below its late 2014 high of $17.98 per share.
Reuters reported that “Sycamore will be organizing Staples along three lines: its stronger delivery business, its weaker retail business and its business in Canada, two sources familiar with the deal said. This structure will give Sycamore the option to shed Staples’ retail business in the future.”
Analysts note that they will be on the lookout for Sycamore to attempt to revive the Staples-Office Depot merger, particularly now that a new Administration is in place.
JOIN THE MOVEMENT to SAVE THE NATIONAL ANTHEM
Please join the thousands of DML readers who have purchased a bumper sticker. CLICK HERE.
If you would like to receive Breaking News text alerts on a smartphone or tablet, download the DML APP which is completely FREE and easy to use. Go to the Google Play Store or the IOS App Store and search for DML APP. Be sure to keep the app’s notifications setting on. Another way to receive alerts is to text to 40404 the following message: follow @realdennislynch (be sure to put a space between the word follow and the @ symbol).
To see more stories like this, sign up below for Dennis Michael Lynch’s email newsletter.
Sign up to get breaking news alerts from Dennis Michael Lynch.
Chicago places questionable statue in front of Trump Tower