Staples To Be Acquired By Sycamore Partners For $6.9 Bln

(RTTNews) - Office-supply retailer Staples Inc. (SPLS) has agreed to sell itself to the private equity firm Sycamore Partners for about $6.9 billion in cash.

Sycamore will pay $10.25 a share for the retailer, which represents 20 percent premium on Staples' 10-day average stock price. It also represents a 12 percent premium to its share price on Tuesday, before reports came about the transaction.

Staples' Board of Directors has unanimously approved the merger agreement and recommends that all Staples stockholders vote in favor of the transaction.

The deal is subject to customary closing conditions, including the receipt of regulatory and stockholder approval, and is expected to close no later than December, 2017.

"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," said Stefan Kaluzny, Managing Director of Sycamore Partners. "We have tremendous confidence in CEO Shira Goodman and great respect for the Staples management team and are excited about this opportunity to partner with them to accelerate long-term profitability."

The deal comes a year after a U.S. federal judge blocked a merger between Staples and rival Office Depot Inc. due to anti-trust violations.

Staples closed Wednesday's regular trading at $9.93, up $0.77 or 8.41%, on the Nasdaq. The stock further gained $0.12 or 1.21% in the after-hours trading.