Sold! For $6.9 Billion

Andy Braithwaite reports at opi.net—Staples sale closes

Staples Inc’s acquisition by private equity firm Sycamore Partners has been completed.

The reseller’s shareholders had approved the $6.9 billion deal last week, paving the way for the transaction to be finalized. It was widely expected that it would still take a few weeks for the sale to close, but it appears to have happened more quickly following the securing of two loan agreements totaling more than $4 billion.

Staples’ press release announcing the finalization of the acquisition contained the customary ‘vanilla’ executive quotes:

“We are pleased to have completed this transaction and look forward to partnering with CEO Shira Goodman and the Staples management team as we seek to increase long-term profitability,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “With the support of its dedicated associates, Staples is well positioned to leverage its iconic brand and leading competitive position to drive even greater value for its business-to-business and retail customers in the US and Canada.”

“We are excited about the tremendous opportunities ahead for the company and our talented associates,” said Goodman. “We look forward to benefitting from Sycamore Partners’ retail and wholesale experience as we work together to deliver exceptional products, services and expertise that enable businesses to work better.”

Interestingly, both those quotes make reference to the retail channel. Is that just smoke and mirrors ahead of a sell-off of Staples US and Canadian retail operations? No doubt we will find that out in the near future.