Office Depot, Inc. (NASDAQ:ODP) today announced that it intends
to sell its European business to The AURELIUS Group.
Office Depot had previously disclosed its intention to explore
strategic alternatives regarding its European business, under a
process that began earlier this year.
“The sale of our European business will allow us to streamline
operations and focus our resources on markets that will provide the
best opportunity to implement our recently announced three year
strategic plan,” said Roland Smith, chairman and chief executive
officer for Office Depot. “The AURELIUS Group has a proven track
record of positioning its acquisitions for future success and we
look forward to working with them to complete this
transaction.”
Since 2005 AURELIUS has completed more than 70 transactions
across Europe and specializes in investing in companies and
corporate spin-offs, as well as complex divisional carve-outs from
corporates.
The transaction is structured as an equity sale, for nominal
consideration, with the buyer acquiring the European business with
its assets and liabilities. Annual revenue for the European
business is approximately EUR 2 billion. The transaction, which has
been approved by Office Depot’s Board of Directors, is subject to
regulatory approval from the European Commission and consultation
with the central works council, which represents employees in
France. The transaction is expected to close by the end of
2016.
Goldman, Sachs & Co. acted as Office Depot’s exclusive
financial advisor on the transaction.
About Office Depot, Inc.
Office Depot, Inc. is a leading global provider of products,
services, and solutions for every workplace – whether your
workplace is an office, home, school or car.
Office Depot, Inc. is a resource and a catalyst to help
customers work better. We are a single source for everything
customers need to be more productive, including the latest
technology, core office supplies, print and document services,
business services, facilities products, furniture, and school
essentials.
The Company has annual sales of approximately $14 billion,
employs approximately 49,000 associates, and serves consumers and
businesses in 59 countries with approximately 1,800 retail stores,
award-winning e-commerce sites and a dedicated business-to-business
sales organization – all delivered through a global network of
wholly owned operations, franchisees, licensees and alliance
partners. The Company operates under several banner brands
including Office Depot, OfficeMax, Grand & Toy, and Viking. The
company’s portfolio of exclusive product brands include TUL, Foray,
Brenton Studio, Ativa, WorkPro, Realspace and HighMark.
Office Depot, Inc.’s common stock is listed on the NASDAQ Global
Select Market under the symbol “ODP”. Additional information about
the transaction can be found in the Company’s Form 8-K filed today.
Additional press information can be found at:
http://news.officedepot.com .
All trademarks, service marks and trade names of Office Depot,
Inc. and OfficeMax Incorporated used herein are trademarks or
registered trademarks of Office Depot, Inc. and OfficeMax
Incorporated, respectively. Any other product or company names
mentioned herein are the trademarks of their respective owners.
FORWARD-LOOKING STATEMENTS
This communication may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements or disclosures may discuss goals, intentions
and expectations as to future trends, plans, events, results of
operations or financial condition, or state other information
relating to, among other things, Office Depot, based on current
beliefs and assumptions made by, and information currently
available to, management. Forward-looking statements generally will
be accompanied by words such as “anticipate,” “believe,” “plan,”
“could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,”
“may,” “possible,” “potential,” “predict,” “project,” “propose” or
other similar words, phrases or expressions, or other variations of
such words. These forward-looking statements are subject to various
risks and uncertainties, many of which are outside of Office
Depot’s control. There can be no assurances that Office Depot will
realize these expectations or that these beliefs will prove
correct, and therefore investors and stockholders should not place
undue reliance on such statements.
Factors that could cause actual results to differ materially
from those in the forward-looking statements include, among other
things, risks related to the termination of Office Depot’s pending
acquisition by Staples, disruption in key business activities or
any impact on Office Depot’s relationships with third parties as a
result of the announcement of the termination of the Staples Merger
Agreement; unanticipated changes in the markets for Office Depot’s
business segments; the inability to realize expected benefits from
Office Depot’s European restructuring plan; fluctuations in
currency exchange rates, unanticipated downturns in business
relationships with customers; competitive pressures on Office
Depot’s sales and pricing; increases in the cost of material,
energy and other production costs, or unexpected costs that cannot
be recouped in product pricing; the introduction of competing
technology products and services; unexpected technical or marketing
difficulties; unexpected claims, charges, litigation, dispute
resolutions or settlement expenses; new laws and governmental
regulations. The foregoing list of factors is not exhaustive.
Investors and stockholders should carefully consider the foregoing
factors and the other risks and uncertainties described in Office
Depot’s Annual Reports on Form 10-K, as amended, and Quarterly
Reports on Form 10-Q filed with the Securities and Exchange
Commission, as well as the Form 8-K filed today with respect to the
proposed transaction. Office Depot does not assume any obligation
to update or revise any forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20160923005657/en/
Office Depot, Inc.Richard Leland, 561-438-3796Investor
RelationsRichard.Leland@officedepot.comorKaren Denning,
630-438-7445Media RelationsKaren.Denning@officedepot.com
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