February 19, 2008
Staples Proposes Acquisition Of Dutch Rival
By Cory Hopkins
Framingham office supply giant Staples Inc. has made an aggressive offer to acquire Amsterdam-based office supply rival Corporate Express for approximately 2.5 billion Euro, or roughly $3.6 billion.
Under the plan, Staples would acquire all outstanding shares of Corporate Express ordinary stock for 7.25 Euro per share, or approximately $10.69, based on current conversion rates. The proposal from Staples is an all-cash offer, and represents a premium of 67 percent of Corporate Express' Feb. 4 closing price, the last day before rumors of a potential sale circulated in the market.
According to a publicly disclosed letter from Staples CEO Ronald Sargent to members of Corporate Express' supervisory board, the public offer by Staples represents the latest in a series of attempts to engage Corporate Express in acquisition talks.
Corporate Express sold more than $1 billion worth of office products in North America in the fourth quarter of 2007, according to a company fact sheet.
Under the plan, Staples would acquire all outstanding shares of Corporate Express ordinary stock for 7.25 Euro per share, or approximately $10.69, based on current conversion rates. The proposal from Staples is an all-cash offer, and represents a premium of 67 percent of Corporate Express' Feb. 4 closing price, the last day before rumors of a potential sale circulated in the market.
According to a publicly disclosed letter from Staples CEO Ronald Sargent to members of Corporate Express' supervisory board, the public offer by Staples represents the latest in a series of attempts to engage Corporate Express in acquisition talks.
Corporate Express sold more than $1 billion worth of office products in North America in the fourth quarter of 2007, according to a company fact sheet.
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