Staples and Office Depot to Sell $550 Million Commercial Contracts, Assets

FRAMINGHAM, MA - Staples and Office Depot announced Tuesday night an agreement to sell more than $550 million in large corporate contract 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, according to Staples. 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, stated a press release.

“We’re pleased to reach this agreement with Essendant as we continue to work to complete the acquisition of Office Depot,” said Staples CEO & Chair Ron Sargent, in a statement. “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.”

Last week, Framingham-based Staples received approval from the European Union to acquire Office Depot, a deal that has been rumored at $6 billion.

“This is a significant step,” said Staples CEO and Chair Ron Sargent in a statement.

“The acquisition has been approved in Australia, New Zealand, China, and Europe. Regulatory agencies around the world understand that this acquisition will allow Staples to provide increased value and service to customers of all sizes. We look forward to a full, impartial judicial review in the United States,“ said Sargent.

The merger is the subject of ongoing litigation with the U.S. Federal Trade Commission, as well as the Canadian Competition Bureau.

The companies recently announced the completion of financing arrangements and the extension of their merger agreement from February 4, 2016 to May 16, 2016.

The deal announced last February was estimated at $6 billion.

Staples has its worldwide headquarters in Framingham.

The company laid off hundreds of employees, last month, as part of a restructuring plan.