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Staples and Office Depot to Sell Commercial Contracts and Assets to Essendant

FRAMINGHAM, Mass. & BOCA RATON, Fla.--(BUSINESS WIRE)--

Staples and Office Depot today announced an agreement to sell more than $550 million in large corporatecontract business and related assets to Essendant. Essendant will pay Staples approximately $22.5 million. More than 25 percent of the revenue acquired by Essendant will be from Fortune 100 companies and approximately half of the revenue will come from Fortune 500 companies.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20160216006714/en/

The transaction is subject to the successful completion of the proposed merger of Staples and Office Depot, as well as other customary closing conditions.

The commercial business and assets being divested relate primarily to accounts held by Staples and Office Depot acting as wholesalers to minority and woman-owned office supply resellers. The acquisition of this business and related assets will significantly increase Essendant’s presence with large corporate customers, improve Essendant’s capabilities, and further enable independent dealers in combination with Essendant to more effectively compete for national account business.

“We’re pleased to reach this agreement with Essendant as we continue to work to complete the acquisition of Office Depot,” said Ron Sargent, Chairman and Chief Executive Officer, Staples. “Our agreement with Essendant strengthens a national competitor, further enables independent office products dealers, and helps minority and woman-owned businesses compete for national commercial customers.”

IMPORTANT ADDITIONAL INFORMATION

In connection with the proposed merger, Staples has filed with the SEC a registration statement on Form S-4 that includes a proxy statement of Office Depot that also constitutes a prospectus of Staples. Staples filed the final...


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