Sycamore Partners Attaches Itself to Staples for Nearly $7 Billion

Private equity firm Sycamore Partners plans to acquire Staples for $10.25 cash per share, a 12% premium over its share price on Tuesday, before reports surfaced that the transaction was close to be being completed. The deal, the largest ever for New York-based Sycamore Partners, is valued at about $6.9 billion.   

"The Sycamore Partners’ team shares Staples’ entrepreneurial spirit and long-term vision,” said Shira Goodman, CEO and president of Staples. “This transaction will enable us to drive greater value for our customers and immense opportunity for our business.”  

The transaction is expected to close no later than this upcoming December.  

In May 2016, Staples abandoned its efforts to acquire rival retailer Office Depot for about $6.3 billion amid Federal Trade Commission antitrust concerns.  Office Depot merged with then rival OfficeMax in 2013.  

Staples operates just over 1,500 stores in the United States and Canada. The retailer has closed 300 stores since 2011 and plans to close another 70 before the end of the year. Locally, Staples stores have closed in Sandy Springs, Snellville, Buckhead, Milton and Roswell, while Staples reduced the size of its Midtown store, allowing for neighbor Whole Foods Market to expand and open a quick serve Brazilian eatery called The Roast.      

In 2015 Sycamore purchased Charlotte, NC-based department store Belk for nearly $3 billion.  Other Sycamore Partners' investments include Coldwater Creek, Hot Topic, Nine West Holdings, Talbots, Stuart Weitzman, Jones New York and Dollar Express.  

Could we see Staples kiosks in in Belk stores? Is this a good move for Staples?  What local Staples store do you think could be on the store closure chopping block?

Please share your thoughts below.