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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.
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