Staples Makes $1B Bid for Office Depot, OfficeMax
Staples Corporation is proposing to acquire ODP Corporation’s consumer business for $1 billion in cash. The bid for the Office Depot and OfficeMax brands follows ODP’s announcement last month that it would spin off its distribution platform as a separate company.
Framingham, MA-based Staples offered approximately $18.27 per share for the consumer business. In a letter to OPD’s board, Staples said the offer represents a 43% premium to the 30-day average closing price of ODP’s stock as of June 2.
Staples said its proposal also provides ODP “with substantial certainty that the parties will be able to consummate the proposed transaction. Staples intends to provide the company with customary equity and debt financing commitment letters sufficient to provide all required funding for the transaction,” which won’t be conditioned on Staples’ receipt of financing.
ODP’s board it was “carefully reviewing” Staples’ offer with assistance from its financial and legal counsel.