Office Depot to Sell European Business
Office Depot agreed to sell its European business to the Aurelius Group, helping sharpen its focus on the North American market after its failed merger with Staples. The deal will be structured as an equity sale for “nominal consideration,” Boca Raton, Florida-based Office Depot said Friday in a statement. The European unit has annual revenue of about 2 billion euros ($2.25 billion).
Total Retail's Take: This is the latest step in Office Depot's strategic plan to salvage its business following its failed merger with competitor Staples. The office supplies retailer, which has been battling declining sales and profits for years, is reducing costs in an effort to become more profitable for shareholders. The European arm of the business is the first casualty of that cost reduction plan. Office Depot believes the move will create streamlined operations and free up more resources to devote to its domestic market.