Corporate Express to buy out Lyreco, form world's top office products supplier

21 May 2008

Dutch office products supplier Corporate Express NV will acquire 100 per cent stake in French rival Lyreco for 1.73 billion euros ($2.35 billion) in cash and equity, as it fends off a hostile bid from US rival Staples Inc.

Corporate Express will issue Lyreco shareholders 102.5 million new ordinary shares (29.9 per cent of the total outstanding capital) - € 560 million in cash and € 340 million as a vendor loan note - the companies said in press release.

The deal values Lyreco at 9.6 times its 2007 earnings of €181 million.

The transaction, which is subject to approval by Corporate Express shareholders, will create the undisputed leading global office products supplier focused purely on the business to business (B2B) market.

Lyreco shareholders have already approved the transaction.

The combination will be the number one B2B player in Europe, North America and Asia-Pacific with combined sales of € 7.8 billion.