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.