July 3, 2017 – Reuters recently reported that private equity firm, Sycamore Partners, recently announced its intention to acquire Staples Inc. (SPLS.O), which is the parent company of Staples Promotional Products, for approximately US$6.9 billion.

Sycamore said it would pay $10.25 per share and Staples said the deal was expected to close by December. Shira Goodman will remain as Staples CEO. UBS Investment Bank, BofA Merrill Lynch, Deutsche Bank, Credit Suisse, Royal Bank of Canada, Jefferies, Wells Fargo Bank, National Association and Fifth Third Bank are said to be providing debt financing for the deal.

Sycamore will be organizing Staples along three lines: its stronger delivery business, its weaker retail business and its business in Canada, two sources familiar with the deal said. This structure will give Sycamore the option to shed Staples’ retail business in the future, one of the sources said.

Staples has the largest share of office supply stores in the United States at 48 percent, according to Euromonitor, and generated $889 million of adjusted free cash flow in 2016.