New York: Stefan Kaluzny has made a ton of money—and drawn his share of critics—buying down-on-the-heels retailers using lots of debt.
Now, Kaluzny’s Sycamore Partners is under scrutiny again, after completing a deal that left even seasoned leveraged-buyout experts agog. On Tuesday, Sycamore pulled off a $5.4 billion refinancing of Staples Inc., which it bought in 2017, that funded a staggering $1 billion dividend to the private equity firm. The dividend is among the biggest in recent memory, even in a world where buyout firms routinely extract large sums for themselves after taking companies private. Combined with a payment it took in January, it means Sycamore has recovered—in less than two years—roughly 80% of the equity it originally put up as part of the deal. Private equity investors typically run their companies for five to seven years before taking profits and exiting the investment.
6 replies (most recent on top)
I worked for Staples for 32 years and was let go last April and this new CEO did it over a conference call HOW NICE
All who said old news congrats. Within 3 years they got 90% ROI. There is no reason to sell off a profitable company
Look at SP’s other Companies I would take my chances with Staples against those other companies.
Nice little story, albeit reported quite late. This billion dollar dividend was actually in April of 2019. For the employee thinking the last two years were huge knows nothing of the business he/she works in. Ask those who are bonus eligible how much they made in bonus this year. Also, ask if the rent in their stores, contact centres and distribution centres is paid on time and is up to date.
That's a great statement "The last 2 years at Staples" You mo–n - did you not see all the layoffs and cutbacks over the past 2 years? As for rehashing old news. It is a good idea to pay attention to history and decisions made at the top when it comes to money. Once Staples is stripped apart like roadkill and Sycamore is done with you, all I can say is...WELCOME TO THE JOB POOL LEROY!
Rehashing old news. This is neither current nor relevant. The last two years at Staples has been huge. With COVID-19 they are gaining more market share. In another two years there will be no one that can compete with their overall platform
Damn. I guess I am thankful upper management is so heartless they laid me off (speaking to me like they never met me) after giving my life to that place for 20+ yrs. It does not sound promising for this company. And it truly could have succeeded with the right leaders. Cue the violin player on the titanic