Sycamore Partners Near Deal to Acquire Staples
It was announced today that private equity firm Sycamore Partners is close to a deal to acquire Staples Inc. Reports say the acquisition price could surpass $6 billion. The acquisition would come one year after a judge put a stop to a merger between Staples and rival Office Depot on antitrust grounds. Sycamore is looking to shift its business model from catering to consumers to catering to companies.
Total Retail's Take: Finally! Or maybe not … Negotiations are still taking place, so there's still a possibility this deal could fall through. With Staples recent string of luck, let's hope thats not the case. A focus on its B-to-B business is a shift in philosophy for Staples, but a wise one considering the current climate for traditional brick-and-mortar retailers that have overextended their physical presences. Focusing on its business customers instead of consumers could help Staples protect itself from a declining market and give it a competitive edge against its e-tailer counterparts.
