Staples Surges on $6 billion Buyout Report

Published on: 22 Jun, 2017

Shares of Staples, Inc. (NASDAQ: SPLS) surged on Thursday after Reuters reported that Private equity firm Sycamore Partners is in talks to acquire the U.S. office supplies retailer.

According to Reuters’ report, the New York-based private-equity firm could buy Staples in a deal valued at 6 billion.

Staples shares rose as much as 7.1 percent to $9.27 in the early trading in New York. The stock was down about 4.8 percent before today’s gains this year. While the benchmark S&P 500 has gained 9 percent this year.

Staples, which sells staples, office machines, promotional products, pens and other supplies both in stores and online, now has 1,255 stores in the United States and 304 in Canada. Last month, the company reported comparable-sales declined 2.6 percent in the first quarter. It also reported quarterly revenue that missed analysts’ estimate.

Reuter said Sycamore Partners is finalizing a debt financing for the acquisition. More details about the deal could be announced as soon as next week.

The move came after a proposed merger between Staples and peer Office Depot was rejected a year ago due to concerns about antitrust.

Ratings

Ratings
  • 219Views
  • 0Comments

Recommend to Friends

  • facebook
  • Twitter
  • google plus
  • pinterest
  • Digg
  • stumbleupon
  • Reddit
  • linkedin

@Newsletter

Sign Up for Weekly Updates

Related Posts

03 Jul, 2017 196
18 Jul, 2017 262
23 Aug, 2017 174
12 Oct, 2017 9504

Comments

There is no comment on this article