Office Supplies Chain Staples Sold for $6.9 Billion - NBC 10 Philadelphia
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Office Supplies Chain Staples Sold for $6.9 Billion

The deal with New York-based Sycamore Partners will allow Staples to adjust to the challenges as a private company

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    Office Supplies Chain Staples Sold for $6.9 Billion
    Getty Images
    This file photo shows a Staples store on Sept. 29, 2005, in Mount Prospect, Illinois.

    Private equity firm Sycamore Partners is buying office supplies chain Staples for $6.9 billion.

    The companies said Wednesday that shareholders of Framingham, Massachusetts-based Staples will get $10.25 per share.

    Staples' stock closed Wednesday up 77 cents, or 8.4 percent, to $9.93, fueled by a late-afternoon report of a deal. The stock rose another 1.5 percent in extended trading after the deal was announced.

    Changing shopping patterns, like the shift to online buying, have hurt office-supplies megastores like Staples. Amazon has become a prime competitor to Staples for corporate customers.

    Lionel Chamoiseau/AFP/Getty Images

    The deal with New York-based Sycamore Partners will allow Staples to adjust to the challenges as a private company.

    Staples' sales have declined 6.1 percent over the past five years to $18.2 billion.

    Staples Inc. is the largest "big box" office-supply chain, but it cut the number of stores it runs to roughly 1,600 from nearly 2,300 in 2012, according to FactSet.

    Last year, Staples shredded a proposed $6.3 billion merger with rival Office Depot after encountering stern resistance from antitrust regulators that culminated in a federal judge blocking the deal.

    Staples confirmed in April that it was exploring a possible sale. Sycamore Partners' Managing Director Stefan Kaluzny said the deal will help Staples pursue its long-term strategy.

    "With an iconic brand, a winning strategy, and dedicated and passionate associates who are deeply focused on the customer, Staples is truly an outstanding enterprise," Kaluzny said.

    Vandals Disrupt St. Louis Businesses After Protest

    [NATL] Dozens Arrested After St. Louis Businesses Were Vandalized, Police Say

    Police in St. Louis arrested more than 80 people and confiscated at least five weapons after violence broke out following peaceful protests, the police chief said Monday.

    "People setting out to do damage are being arrested, and these criminals we've arrested should be held accountable and prosecuted to the fullest extent of the law," said Acting Police Commissioner Lawrence O'Toole during a press conference early Monday morning. "We're in control, this is our city and we are going to protect it."

    The protests are in response to a recent not guilty verdict for an ex-police officer who was charged with first-degree murder.

     

    (Published 4 hours ago)

    The companies said they expect this deal to close by the end of the year.