Staples has held talks with Office Depot about spinning off 1,500 retail stores, according to New York Post.
Earlier this month, the company revealed in a SEC filing that "Party A" offered between $625M and $700M for its retail stores in North America.
FRAMINGHAM, Mass.—August 15, 2017— Staples, Inc. (NASDAQ: SPLS) (“Staples” or the “Company”) today announced that Arch Merger Sub Inc., a Delaware corporation (“Merger Sub”), formed by funds managed by Sycamore Partners Management, L.P. (“Sycamore”) in connection with the previously announced proposed acquisition of the Company by such funds, pursuant to the Agreement and Plan of Merger, dated as of June 28, 2017 (the “Merger Agreement”), by and among the Company, Arch Parent Inc., a Delaware corporation (“Parent”), and Merger Sub, in which Merger Sub will merge with and into the Company with the Company continuing as the surviving corporation (the “Merger”), has priced an offering of $1 billion in aggregate principal amount of Senior Notes due 2025 (the “Notes”). The Notes will bear an interest rate of 8.500% per annum and will be issued at a price of 100% of the aggregate principal amount.
Consummation of the offering is subject to customary closing conditions, and is expected to occur on August 28, 2017. Merger Sub intends to use the proceeds from the offering of the Notes, together with borrowings under certain senior secured credit facilities (the “New Senior Secured Credit Facilities”) and the cash equity contributions of certain funds managed by Sycamore, to finance the consummation of a portion of the Merger attributable to the acquisition of the North American Delivery business of Staples and to pay related fees, costs and expenses.
I was once a tech department manager for Office Depot, sometime around 2008. Left Staples for OD, left OD to come back to Staples. If you would've told me that Staples retail would eventually fall to Office Depot retail I'd have laughed at you. I'd have laughed right in your face. The idea of Staples being absorbed by OD sickens me a little. Staples used to be such a great place.
many people won't be able to complain about working at Staples anymore since we'll be working for Depot.
saving the brand name!
whoo hoo!
Here's a great history of how our Bain Capital trained CEO planned to sell Staples from Day 1 of her tenure. She knows nothing else and cannot lead a team.
Folks there are no surprises here. There's no mystery. She does not give hoot about the company nor do the board or anyone else. Not only that, they cannot even effectively negotiate a deal:
"Analysis: Staples’ takeover journey revealed":
https://www.opi.net/financial/mergers-acquisitions/analysis-staples-takeover-journey-revealed/
Saw the same thing come through my news feed this morning. I thought Sycamore would eventually get Staples out of the retail business but didn't think it would be this quick. If true, the upside is that many people won't be able to complain about working at Staples anymore since we'll be working for Depot.