On February 4, 2015, Office Depot agreed to be acquired by rival Staples for $6.3 billion . However, on December 7, the Federal Trade Commission voted to block the merger.
Under the terms of the deal, Staples will acquire all of the outstanding shares of Office Depot , giving Office Depot investors $7.25 in cash for each share owned and a small percentage of Staples stock. Based on Tuesday’s closing price of Office Depot stock, the transaction values Office Depot at $11.41 per share, or $6.3 billion.
On Friday, Staples made a fourth attempt to acquire ODP , home to the combined Office Depot and Office Max, via a billion dollar offer for the company’s consumer-facing businesses. Staples and ODP’s businesses have been declining for years.
Staples said Friday it had sent a letter to the board of Office Depot outlining a $1 billion offer — or $18.27 a share — for its consumer business, which includes the Office Depot chain of stores and Office, and max. Staples tried to buy all of Office Depot for more than $2 billion in January , but Office Depot rebuffed those efforts.
Is OfficeMax owned by Staples?
Kaluzny, who runs Staples owner Sycamore Partners, submitted the bidto the board of directors of Office Depot and Office. Max parent ODP Corp. on Friday. Framingham-based Staples, the biggest office supply chain , had proposed a $2.1 billion offerfor the entire ODP business in January.
Why did staples and office depot not merge?
In 2016, Staples and Office Depot called off their merger after a federal judge issued an injunction temporarily blocking the $6.3 billion deal over antitrust concerns . Staples previously tried to acquire Office Depot in 1996. But the deal was called off after regulators raised antitrust concerns.
The next thing we wanted the answer to was, why did Staples’Office Depot merger fail?
The best answer is staples tried to negotiate, but the commission wasn’t having it . This is Staples’ second failed Office Depot merger. Staples announced its plan to acquire Office Depot in February of 2015, for what was valued at the time to be $6.3 billion in cash and stock.
Then, did the FTC block the Staples-Office Depot Deal?
One way to think about this is the Journal points out that Staples and Office Depot tried to merge back in 1997 and were also blocked back then. Staples’ CEO, Ron Sargent, is pretty unhappy with the outcome, saying that the FTC “fell woefully short of proving its case.”.
Staples and ODP’s businesses have been declining for years.
Does Staples have an Instacart in Boston?
In 2020, Staples attempted to modernize its offerings with an Instacart partnership and a new experiential store, Staples Connect, that provides a working and learning joint space in six Boston stores.
Is Office Depot going out of business 2021?
Both companies continue to close stores at a steady rate: from 2017 to 2021, Staples and Office Depot closed 545 and 255 stores, respectively. Competitors, on the other hand, grow.
Moreover, how much did Office Depot’s cash offer increase its sales?
Office Depot’s business-to-business unit comprised about half its $10 billion in sales last year. This latest offer, which is all cash, comes at a roughly 43 percent premium to the 30-day average of Office Depot’s share price as of June 2, 2021.