SPLS, ODP Reach $6.3B Merger Deal

FRAMINGHAM, MA—Office-supply retailing giants Staples Inc. and Office Depot Inc. said Wednesday they’ve agreed to merge in a cash-and-stock deal valued at $6.3 billion. The combined company will have pro forma annual sales of about $39 billion; the deal is expected to close by year’s end.

“This is a transformational acquisition which enables Staples to provide more value to customers, and more effectively compete in a rapidly evolving competitive environment,” says Ron Sargent, SPLS’ chairman and CEO. “We expect to recognize at least $1 billion of synergies as we aggressively reduce global expenses and optimize our retail footprint. These savings will dramatically accelerate our strategic reinvention which is focused on driving growth in our delivery businesses and in categories beyond office supplies.”