Staples has announced that it is entering a merger agreement with a New York-based private-equity firm.
According to cnbc.com, the office supplies retailer has agreed to be acquired by Sycamore Partners for $10.25 per share which equates to the value of around $6.9 billion.
Considered to be the largest buyout this year, the deal is expected to be completed by December 2017. Moreover, Barclays and Morgan Stanley are serving as Staples’ financial advisers. Currently, nine banks including Bank of America Merrill Lynch and UBS are providing debt financing to Sycamore Partners.
Stefan Kaluzny, the managing director of Sycamore Partners, stated, “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 to accelerate long-term profitability.”
Crucially, Staples’ shares rose 8% as the news broke out, and closed at US$9.93 with a market cap of approximately US$6 billion.
Sycamore predominantly invests in retail; its previous investments include regional department store operator Belk Inc., discount general merchandise retailer Dollar Express and mall and web-based specialty retailer Hot Topic.