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Office Depot Inc. (ODP)

  • Thu, Feb. 5, 10:14 AM
    • Janney Capital thinks Staples (NASDAQ:SPLS) was a little conservative when it estimated $1.6B in deal synergies from a merger with Office Depot (NASDAQ:ODP).
    • The investment firm sees fair value on Staples at $22.
    • Other analysis on the deal isn't quite so optimistic.
    • Staples will inherit another 2K stores that collectively haven't put up a positive comp since 2007, notes Harvard professor Rajiv Lal.
    • Another breakdown: SA contributor Dallas Salazar
    • Previously: Staples acquires Office Depot for $6.3B (Feb. 04 2015)
    • Shares of Staples are up 0.84% to $16.91 today. Office Depot (ODP) is hanging steady at $9.47 vs. the implied deal price of $11.
    | 1 Comment
  • Wed, Feb. 4, 7:09 AM
    • Staples (NASDAQ:SPLS) announces it will acquire Office Depot (NASDAQ:ODP) for $6.3B.
    • The transaction values Office Depot at $11.00 per share vs. yesterday's closing price of $9.28.
    • The company expects to generate at least $1B in annualized cost synergies.
    • A closing before the end of the year is anticipated after a regulatory review is completed.
    • Shares of ODP are currently halted.
  • Tue, Feb. 3, 10:09 AM
    • Shares of Office Depot (NASDAQ:ODP) are up 19.7% and Staples (NASDAQ:SPLS) has run up an 11% gain as investors discount any concerns that regulators will get in the way of an office supply store mega-merger.
    • Retail analysts think significant cost savings could be derived from a merger as the combined store count of the chains is reduced.
    • Staples has over 3.8K stores, while the Office Depot/OfficeMax count is over 2K.
    • Previously: Staples, Office Depot in advanced talks to combine
    | Comment!
  • Tue, Feb. 3, 2:03 AM
    • Facing pressure from activist investor Starboard Value, WSJ reports that Staples (NASDAQ:SPLS) and Office Depot (NASDAQ:ODP) are in advanced talks to merge.
    • Regulators nixed Staples' attempt to buy Office Depot in 1997, but the FTC approved Office Depot's $976M acquisition of OfficeMax in 2013 without the need to close any stores.
    • The price and structure of the proposed deal couldn’t be learned.
    • SPLS +5.2%; ODP +13% premarket
  • Dec. 11, 2014, 12:19 PM
    • Starboard Value will push for a merger between Staples (SPLS +8.2%) and Office Depot (ODP +13.2%), according to reports.
    • Though a merger between the two retail chains has been bantered around before, Starboard might have the clout to take the discussion into the boardroom.
    • Citi calls a mega office supply store merger unlikely.
    • Previously: Big moves in office supply sector after Starboard buys and raises
  • Dec. 11, 2014, 1:49 AM
    • Activist investor Starboard Value has bought a 6% stake in Staples (NASDAQ:SPLS) and raised its stake in Office Depot (NASDAQ:ODP) to 10%, in a move that could increase pressure for a combination of the office-supply retailers, WSJ reports.
    • If Starboard pushes for a deal, it would be the second time in recent months it pursued a merger of competitors, having called for a Yahoo-AOL combo since September.
    • Staples closed up 2.5% yesterday, Office Depot ended up 2.7%.
    | Comment!
  • 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
    | 1 Comment
  • 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.
    | Comment!
  • 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)
    | Comment!
  • Jun. 4, 2013, 10:57 AM
    Office Depot (ODP -2.5%) says it reached a final agreement to sell its 50% stake in Office Depot De Mexico to Grupo Gigante. The deal valued at $690M is contingent on approval from Mexican regulators.
    | Comment!
  • Mar. 17, 2013, 5:23 AM
    Office 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).
    | Comment!
  • 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)
    | Comment!
  • 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.
    | Comment!
  • 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)
    | Comment!
  • Feb. 19, 2013, 7:03 AM
    Antitrust attorneys think that a potential merger between Office Depot (ODP) and OfficeMax could face stiff headwinds from the Federal Trade Commission, although the pairing stands a better chance than if Staples (SPLS) were to try to combine with either company. Early investor reaction: ODP +11.2% premarket and OMX +13.1%.
    | Comment!
  • Feb. 19, 2013, 3:54 AM
    Grupo 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).
    | Comment!
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Company Description
Office Depot Inc is a supplier of office products and services. It offers products including office supplies, paper, ink & tone, cleaning chemical & equipment's, monitors & equipment's, computers & tablets, office appliances, and school supplies.