It’s been a rough time for Staples.
Staples has been acquired by Sycamore Partners for $6.9 billion in a deal that will be carried out by the end of December. Specifically, Sycamore agreed to buy the office supplies retail giant for $10.25 per share in cash. With a 48 percent share of the office supply sector, this move by Sycamore Partners may be worth its while.
Most buyout firms have strayed from U.S. retailers (probably because of the increasing popularity of eCommerce), but it appears that these transactions are moving into a more strategic direction. Rather than focusing on retailers that have changing consumer tastes, niche markets are becoming a key area of focus.
This may mean that we'll start to see more retailer acquisitions outside of the mall arena take place moving forward as brick-and-mortar locations continue to make transitions into tech-infused shopping spaces.
After the deal closes Sycamore plans to reorganize Staples into three areas which include: its stronger delivery business, its weaker retail business and its Canadian business. With Staples’ poor Q1 retail performance, this may be an indicator that Sycamore may do away with the retail side.