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Staples to Be Acquired by Sycamore Partners for $6.9 Billion
Source: Bloomberg
Staples to Be Acquired by Sycamore Partners for $6.9 Billion
By Matthew Townsend
June 28, 2017, 5:31 PM EDT June 28, 2017, 6:18 PM EDT
Staples Inc. will be acquired by Sycamore Partners for about $6.9 billion in one of the largest retail deals of the year, a wager that the office-supply chain is better off continuing its turnaround plan as a private company.
Sycamore, saying it was attracted to Staples’ “iconic brand,” is paying $10.25 a share for the retailer, according to a statement on Wednesday. That represents a 12 percent premium to its share price on Tuesday, before reports surfaced that the transaction was close to be being completed.
The deal gets Staples out of Wall Street’s limelight and lets it focus on a turnaround plan that includes reducing its retail footprint. But it’s hard to tell how the buyout will fix its fundamental challenges, including the rapid shift of customers to Amazon.com Inc. and slackening demand for traditional office supplies.
“This doesn’t change the industry dynamics or the pressures the retailer faces,” said Seema Shah, an analyst at Bloomberg Intelligence.
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By Matthew Townsend
June 28, 2017, 5:31 PM EDT June 28, 2017, 6:18 PM EDT
Staples Inc. will be acquired by Sycamore Partners for about $6.9 billion in one of the largest retail deals of the year, a wager that the office-supply chain is better off continuing its turnaround plan as a private company.
Sycamore, saying it was attracted to Staples’ “iconic brand,” is paying $10.25 a share for the retailer, according to a statement on Wednesday. That represents a 12 percent premium to its share price on Tuesday, before reports surfaced that the transaction was close to be being completed.
The deal gets Staples out of Wall Street’s limelight and lets it focus on a turnaround plan that includes reducing its retail footprint. But it’s hard to tell how the buyout will fix its fundamental challenges, including the rapid shift of customers to Amazon.com Inc. and slackening demand for traditional office supplies.
“This doesn’t change the industry dynamics or the pressures the retailer faces,” said Seema Shah, an analyst at Bloomberg Intelligence.
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Read more: https://www.bloomberg.com/news/articles/2017-06-28/staples-to-be-acquired-by-sycamore-partners-for-6-9-billion