Categories
OfficeMax Staples Makes $1 Billion Bid For Office Depot

Staples Makes $1 Billion Bid For Office Depot, OfficeMax

June 07, 2021 at 02:46AM
by PYMNTS

USR Parent, the corporate parent of Staples office supply stores, said Friday (June 4) that it has formally offered to pay $1 billion for the businesses operating as Office Depot and Office Max, according to a press release.

The price is based on an offer to ODP Corp., which operates Office Depot and OfficeMax retail stores and officedepot.com, to buy its shares of its consumer business at $18.27 each. The offer also is for “the Office Depot and OfficeMax intellectual property, including all brand names,” the release stated.

USR Parent is based in Framingham, Massachusetts, and ODP in Boca Raton, Florida. In January, ODP rejected an offer from Staples to purchase all its businesses.

According to the release, a Friday letter stated, in part: “Our proposal is a compelling value proposition for the company’s shareholders, as the cash consideration of approximately $18.27 per common share represents approximately 43 percent of the 30-day average closing share price for the company of $43.21 as of June 2, 2021.

The letter continued: “Moreover, as you know, in November 2020, Staples filed for the necessary governmental antitrust approvals to acquire the company, and has made substantial progress responding to the governmental data and document requests issued in connection therewith. With the company’s full cooperation, we are confident that the parties will be able to expeditiously obtain the necessary antitrust approvals for the proposed acquisition of the consumer business.”

The letter’s kicker: “We remind you of our intention to commence a tender offer for all of the outstanding common shares of the company unless our negotiations for a consensual alternative transaction as proposed herein are successful, and we reserve all rights in connection therewith.”

Reuters reported that in response to the Staples offer, “ODP said it is reviewing Staples’ proposal with the assistance of its financial and legal advisors.”