Report: Staples' new owner said to split company
The Staples headquarters in Framingham.
The new private owner of Staples, Sycamore Partners, reportedly intends to split the Framingham office retailer in three to help fund the purchase.
Sycamore, a New York private equity company, will split Staples into a United States division, a Canadian one and a third for its corporate-supply business, The Wall Street Journal reported Friday, citing people familiar with the matter. All three would remain under the same parent company.
That decision, the Journal reported, is intended to help fund the $6.9 billion purchase by making the deal easier to sell to bond and loan investors. UBS, Bank of America and other Wall Street banks would back the purchase of the corporate-supply division,
The Staples deal is the largest leveraged buyout announced this year, according to the Journal.
Sycamore will bring Staples under common ownership with a range of other retailers including Coldwater Creek, Hot Topic, Nine West, Talbots and The Limited.
Staples said its board of directors has unanimously approved the merger agreement and recommends all Staples stockholders vote in favor of the transaction. The deal is expected to close by December.
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