Office product chain being acquired for $6.9 billion

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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.

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