Sycamore Partners Finalizes Purchase of Staples
Private equity firm Sycamore Partners has completed the $6.9 billion acquisition of Framingham, Massachusetts-based Staples. As a result of the merger, the common stock of the office supply retailer will no longer be listed for trading on Nasdaq.
Under Sycamore, Staples joins a host of other retailers and wholesalers, including:
- Coldwater Creek
- Dollar Express
- Hot Topic
- Jones New York
- Kurt Geiger
- MGF Sourcing
- NBG Home
- Nine West Holdings
- Pathlight Capital
- Stuart Weitzman
- The Limited
"We are pleased to have completed this transaction and look forward to partnering with CEO Shira Goodman and the Staples management team as we seek to increase long-term profitability," Stefan Kaluzny, managing director of Sycamore Partners, said in a press release. “With the support of its dedicated associates, Staples is well-positioned to leverage its iconic brand and leading competitive position to drive even greater value for its business-to-business and retail customers in the U.S. and Canada.”
Goodman echoed these sentiments. “We are excited about the tremendous opportunities ahead for the company and our talented associates,” she said. “We look forward to benefitting from Sycamore Partners’ retail and wholesale experience as we work together to deliver exceptional products, services and expertise that enable businesses to work better.”
It’s been a bumpy road for Staples, with the company having reported revenue declines over the last five years—from approximately $24.67 billion at the end of fiscal year 2011 to roughly $18.25 billion in 2016. There also was a failed mega-merger attempt with Office Depot, which ultimately led to a split with then CEO Ron Sargent.
At that point, Staples started to look toward more business-to-business services. When it was announced that Sycamore Partners was a serious buyer, criticism quickly followed. Particularly, some felt the $6.9 billion price tag was too low.