It did not take long for the news of an Office Depot/OfficeMax merger to turn into a reality. The Board of Directors for both companies have agreed to an all-stock merger.
According to an article on RIS News, the merger will help them compete with industry heavyweight Staples, as well as offer their current customers enhanced offerings across multiple distribution channels.
From the article:
“The merger will combine companies with revenue of approximately $18 billion, compared with Staples’ more than $24 billion in sales last year. The merger is a bid to revive a retailer that has been losing sales to online rivals and Staples, the largest U.S. office-supplies chain.
Under the agreement, OfficeMax stockholders will receive 2.69 Office Depot common shares for each share of OfficeMax common stock. The company’s new board will include an equal number of directors designated by Office Depot and OfficeMax, the companies said. The board will conduct a search for a CEO, both incumbent CEOs, Neil Austrian of Office Depot and Ravi Saligram of OfficeMax will be considered.”