Office equipment retail chains OfficeMax and Office Depot said they will merge to create an $18 billion global office solutions company.
OfficeMax Incorporated and Office Depot, Inc. signed a definitive merger agreement, under which the companies would combine in an all-stock merger of equals transaction intended to qualify as a tax-free reorganization.
The transaction was unanimously approved by the board of directors of both companies. The merger is intended to produce a stronger, more efficient, more competitive global retail chain. The new combined company, which would have had pro forma combined 2012 revenue of approximately $18 billion, will also have improved financial strength and flexibility, and will benefit from increased scale and synergies.
The incumbent CEOs of both companies, as well as external candidates, will be considered in the search for a CEO for the new combined company. Management of the new combined company will also include members drawn from both companies. The combined company's name, marketing brands, and corporate headquarters location will be determined following the appointment of the CEO of the combined company.
The merger is expected to close by the end of calendar year 2013, subject to stockholder and regulatory approvals.
Back to Breaking News