Cerberus Capital Management to Acquire Staples’ European Business
December 07 2016 - 5:00AM
Business Wire
Staples, Inc. (NASDAQ:SPLS) and Cerberus Capital Management,
L.P. (Cerberus) announced today that Staples and Cerberus have
entered into an agreement in relation to the sale of a controlling
interest in Staples’ European operations to a Cerberus affiliate.
Staples’ European business consists of retail, contract, and online
businesses in 16 countries generating aggregate annual sales of
approximately €1.7 billion. Staples is retaining a 15 percent
equity interest in the business and will be represented on its
board of directors following the closing of the transaction. In
accordance with applicable law, Staples will now consult relevant
European works councils. Subject to these consultations and
satisfaction of other conditions, the parties anticipate closing
the transaction during the first quarter of Staples’ fiscal 2017
year.
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“One of our top strategic priorities has been to narrow our
geographic focus on North America, and this is an important step
toward simplifying our operations and better positioning Staples
for sustainable long-term growth,” said Shira Goodman, Chief
Executive Officer and President, Staples, Inc. “We believe that
working with Cerberus will help enable the future success of the
Staples Europe business, benefiting our associates and customers in
the region.”
“We intend to instill a keen sense of urgency, focus, and
commitment throughout the entire Staples Europe organization,
enhance the company’s competitive position across its markets and
channels, and return the business to growth by capitalizing on its
many assets, including its well-recognized brands, strong customer
relationships, dedicated sales force, advanced distribution and IT
infrastructure, comprehensive pan-European footprint, and talented
management and associates,” said Steven F. Mayer, Co-Head of Global
Private Equity and Senior Managing Director of Cerberus. “Our
strategy is to invest in a variety of initiatives designed to
strengthen Staples Europe’s position as the leading provider of
solutions to small, mid-sized, and large businesses in Europe,
including sales force expansion, further diversification of
products and services beyond office supplies, and next-generation
technologies. Our unrelenting focus throughout the organization
will be on satisfying our customers and on operational
execution.”
Upon closing of the transaction, the Staples Europe business
will be separated into a privately-held company controlled by an
affiliate of Cerberus. The new company will enter into a licensing
agreement with Staples for the use of certain Staples intellectual
property, including its brand, a global accounts agreement, and
transition services agreement governing a variety of services for
defined periods. The company will operate under the Staples banner
name and other sub-brands in European markets, and its associates
will continue to be employees of Staples Europe, which will
maintain its headquarters in Amsterdam. Olof Persson, an executive
with Cerberus’ operations team and the former President and CEO of
Volvo Group, will be appointed executive chairman of the new
company.
The agreement with Cerberus follows Staples’ recent announcement
of the sale of its UK retail business to Hilco Capital Limited,
which also aligned with Staples’ new strategic direction of
right-sizing its international business.
Barclays is acting as exclusive financial advisor to Staples.
Clifford Chance LLP is acting as legal advisor to Staples. Kirkland
& Ellis LLP and Linklaters LLP are acting as legal advisors to
Cerberus.
About Staples, Inc.
Staples helps small business customers make more happen by
providing a broad assortment of products, expanded business
services and easy ways to shop – in stores, online via mobile or
through social apps. Staples Business Advantage, the
business-to-business division, caters to mid-market, commercial and
enterprise-sized customers by offering a one-source solution for
the products and services they need, combined with best-in-class
customer service, competitive pricing and a state-of-the-art
ecommerce site. Headquartered outside of Boston, Staples, Inc.
operates throughout North and South America, Europe, Asia,
Australia and New Zealand. More information about Staples (NASDAQ:
SPLS) is available at www.staples.com.
About Cerberus Capital Management,
L.P.
Established in 1992, Cerberus Capital Management, L.P. is one of
the world’s leading private investment firms. Cerberus has more
than US $30 billion under management invested in four primary
strategies: operational private equity, both control and
non-control; distressed securities and assets; commercial
mid-market lending; and real estate-related investments. From its
headquarters in New York City and network of affiliate and advisory
offices in the U.S., Europe and Asia, Cerberus has the
on-the-ground presence to invest in multiple sectors, through
multiple investment strategies, in countries around the world.
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version on businesswire.com: http://www.businesswire.com/news/home/20161207005526/en/
MediaStaples, Inc.Mark Cautela,
508-253-3832mark.cautela@staples.comorCerberusLiz Micci,
646-495-2702emicci@gpg.com
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