September 24, 2018

Staples officially sends $500M offer to Illinois company

Photo/Grant Welker
Staples' Framingham headquarters

Framingham office retailer Staples and two affiliates Monday commenced a nearly $500 million tender offer to acquire an Illinois office supply distributor.

The announcement comes more than a week after Essendant agreed to the merger with Staples and its affiliates Egg Parent Inc. and Egg Merger Sub Inc.

The transaction includes the purchase of Essendant's 37.7 million outstanding shares for $12.80 each and other fees totaling $497.9 million, according to regulatory filings with the U.S. Securities and Exchange Commission.

On Sept. 14, Essendant said it agreed to terms with Staples after several months of a bidding war between Staples and Atlanta-based Genuine Parts Co.

Essendant then said its board determined Staples' offer was better for the company than the merger agreement with Genuine Parts and its S.P. Richards business, which was first announced in April.

The $12.80 per share transaction is higher than Staples original unsolicited offer of $11.50 in May.

Essendant, which announced a merger agreement with Genuine Parts Co. in April, has terminated that agreement. As part of the termination, Staples is paying Genuine Parts Co. a $12 million break-up fee.

Read more

Staples $500M acquisition stalled by shutdown


Type your comment here:

Today's Poll What are the city's biggest housing needs? <>
Most Popular on Facebook
Copyright 2017 New England Business Media