Sycamore Partners Plans To Spin Off Staples Retail Business
Staples will soon spin off its retail operations.
Sycamore Partners, Staples' new private equity owners, has announced plans to spin off its retail operations from its corporate sales units.
In a Securities and Exchange Commission filing, Staples said it plans to divide the U.S. and Canadian retail businesses, including staples.ca, into two Sycamore-affiliated entities. The North American delivery unit will remain, Retail Dive reports.
Each entity will be independently financed and is expected to turn a profit of approximately $1.35B for Staples Inc.
To finance the transaction with Sycamore, Staples will be taking out an estimated $4.25B in debt in addition to paying $145M in fees and expenses and $156M in fees related to merger financing.
News of the spinoff comes after the Federal Trade Commission blocked Staples and Office Depot’s proposed $6.3B merger in 2015 due to antitrust concerns. Staples later sold to Sycamore Partners for $6.9B.