Staples sells off $550M in contracts in bid for acquisition approval
Staples
Staples is having anything but an easy time appeasing the FTC in a planned acquisition of Office Depot.
In a move to appease the Federal Trade Commission and get approval for the acquisition of Office Depot by Staples, the companies announced the sale of $550 million in commercial contracts.
The two companies have agreed to sell the contracts to Essendant for approximately $22.5 million in a move the companies said will strengthen Essendant as a national office supply competitor. The FTC has opposed Staples' acquisition of Office Depot citing competition concerns. Staples is currently in litigation with the FTC to allow the acquisition.
The commercial business and assets being divested relate primarily to accounts held by Staples and Office Depot acting as wholesalers to minority and female-owned office supply resellers. The acquisition of this business and related assets will significantly increase Essendant’s presence with large corporate customers, improve its capabilities, and further enable it to collaborate with independent dealers to more effectively compete for national business, according to a release from Staples and Office Depot.
Read more
WBJ Web Partners
Most Recent
Most Recent
0 Comments