Nov. 6, 2013, 9:03 AM
- Office Depot (ODP) and OfficeMax (OMX) complete their merger of equals. The combined entity will use the name Office Depot and trade on the NYSE under the symbol ODP.
- The new Office Depot had TTM revenue through Q3 of ~$17B and more than 2.2K locations.
- Cost synergies by the 3rd year following the merger are now expected to be in the upper half of the previously announced $400M-$600M range, excluding potential synergies from $2B of opex relating to retail stores and working capital savings that have not been evaluated yet. ODP expects to incur ~$200M in costs associated with the merger in 2013 and up to $600M-$650M to realize estimated synergies.
- B. Riley has upgraded ODP to Buy from Neutral with a PT of $7.
- ODP Q3 results, OMX Q3 results
Oct. 21, 2013, 4:38 AM
- The Federal Trade Commission is reportedly set to give antitrust approval to the merger of Office Depot (ODP) and OfficeMax (OMX) without requiring the retailers to make divestitures.
- The FTC has concluded that the tie-up won't reduce competition substantially, mainly because of the size of e-commerce in the sector.
- The companies hope to appoint a CEO to run the merged entity once the FTC has given its authorization.
Aug. 21, 2013, 3:01 AM
- Just hours ahead of its shareholders meeting today, Office Depot (ODP) has averted a proxy battle with Starboard Value, its biggest shareholder, by agreeing to support the nomination of three of the latter's candidates for the company's board .
- Starboard, which owns a 14.6% holding, had originally wanted six directors.
- The agreement will lead to the board increasing to by one member to 11. One of Starboard's directors will sit on the committee searching for a CEO for Office Depot and OfficeMax (OMX) for when their merger is completed.
- The settlement came not long after Office Depot said the sides had failed to reach a deal. (PR)
Mar. 17, 2013, 5:23 AMOffice Depot (ODP) has reportedly extended talks to sell its 50% stake in its Mexican unit to Grupo Gigante, which holds the rest, after the deadline for a deal expired on Friday. The sides have continued the negotiations partly because of Office Depot's merger with OfficeMax (OMX). | Mar. 17, 2013, 5:23 AM
Feb. 20, 2013, 11:08 AM
Heard during the OfficeMax-Office Depot merger conference call: 1) Execs painstakingly describe the deal as a merger of equals - not ODP buying OMX. 2) The companies expect $350M-$450M of one-time costs tied to the transaction and expect capital investment of $200M. 3) The international operations of the two retailers are "complementary" and aren't expected to deliver significant synergies. 4) Without saying the word Amazon, execs say the merged company will improve and expand e-commerce offerings. (webcast, slides)| Feb. 20, 2013, 11:08 AM
Feb. 20, 2013, 9:46 AM
Take two: The Office Depot (ODP +9.2%) deal to merge with OfficeMax (OMX +6.1%) looks to be official now with a more detailed press release out from both companies. By the third year of the merger, cost synergies of $400M to $600M a year are anticipated. Before the transaction closes, OfficeMax retains the right to pay shareholders dividends of up to $1.50 per share. A conference call at 11:00 AM EST is scheduled.| Feb. 20, 2013, 9:46 AM
Feb. 20, 2013, 7:28 AM
Office Depot (ODP) agrees to buy OfficeMax (OMX) in a deal in which the company will issue 2.69 new shares of common stock for each outstanding share of OfficeMax common stock. Representation on the board will be split 50-50. Update at 9:10: The deal was announced prematurely and the press release has been taken down from the Office Depot website. (PR)| Feb. 20, 2013, 7:28 AM
Feb. 19, 2013, 3:54 AMGrupo Gigante has refrained from denying speculation that it's interested in buying the 50% of Office Depot's (ODP) Mexican unit that it doesn't. Instead, Grupo Gigante says it's held discussions with financial firms to use "credit lines for financial purposes to execute its business plan and that of its subsidiaries." Meanwhile, Office Depot is reportedly in merger talks with OfficeMax (OMX). | Feb. 19, 2013, 3:54 AM
Jan. 22, 2013, 12:45 PMCredit Suisse thinks the time is ripe for the long-awaited merger between Office Depot (ODP -2.6%) and OfficeMax (OMX +0.3%) to finally occur. A combined company could create some synergistic opportunities and give Staples (SPLS +0.8%) something to think about in the sector. But is it too late to catch the wave? Shares of OfficeMax and Office Depot have already drawn investors in this year on M&A speculation, up 13% and 38% YTD respectively. | Jan. 22, 2013, 12:45 PM
Jun. 20, 2011, 1:51 PM
Jun. 3, 2011, 11:53 AM
Staples (SPLS -3.5%) chief Ron Sargent plays matchmaker - saying consolidation in the struggling office-supply sector means the big three will have to become two, and Office Depot (ODP) and OfficeMax (OMX) are a "natural pairing." He thinks that's more likely to be approved than Staples buying either; or is Staples itself a target?| Jun. 3, 2011, 11:53 AM