Staples to Be Acquired by Private Equity Firm for $6.9B
Private equity firm Sycamore Partners announced today that it will buy Staples for $10.25 per share, in a deal which values the office supply retailer at around $6.9 billion. CNBC reports Staples has 1,255 stores in the United States and 304 in Canada. It has the largest market share of office supply stores in the U.S. at 48 percent, and its share has increased since 2011. Sycamore has several holdings in retail, including Talbots, Dollar Express, Goldwater Creek, Hot Topic and Nine West. "We have tremendous confidence in CEO Shira Goodman and great respect for the Staples management team, and are excited about this opportunity to partner with them," Stefan Kaluzny, managing director of Sycamore Partners, said in a statement.
Total Retail’s Take: It seems Staples is on the right track. After a U.S. federal judge thwarted a merger between Staples and rival Office Depot Inc. on antitrust grounds last year, the future of the company was questionable. However, a shift in strategy to focus on its B-to-B business and now its acquisition by Sycamore Partners have breathed new life into the company. With a new owner and business approach, it will be interesting to monitor Staples in the second half of 2017.