Staples to acquire Corporate Express for $2.65 billion; form world's top office supplier

11 June 2008

Mumbai: US office supplies retailer Staples Inc will buy Dutch office supplies distributor Corporate Express NV, for around  $2.65 billion (1.7 billion euros), to create the world's biggest office products supplier.

Corporate Express also ended an attempt to acquire privately owned French rival Lyreco to fend off Staples, after the US company raised its all-cash offer to 9.25 euros per share from the 9.15 euros it announced last week and the 7.25 euros it offered in February. (See: Corporate Express to buy out Lyreco, form world's top office products supplier)

Amsterdam-based Corporate Express will pay $30 million in break-up fee to  Lyreco, which will in turn look at Europe and Asia for expansion.

Staples and Corporate Express, with combined annual revenues of $27 billion and over 94,000 employees in 28 countries, expect to save up to 60 million euros in three years in US alone.

The companies said they did not expect any major job losses.

The board of Corporate Express has unanimously recommended the offer, which expires on June 27. The company would hold a shareholders meeting on June 18, but there would no longer be a vote on the proposed Lyreco deal, it said.

While Staples could not raise its bid again after it offered 9.15 euros last week under Dutch regulations, it bought about 1.1 per cent of Corporate Express shares at 9.25 euros each in an off-market transaction.