Reuters logo
BRIEF-Office Depot to acquire CompuCom for about $1 billion​
October 3, 2017 / 9:20 PM / in 14 days

BRIEF-Office Depot to acquire CompuCom for about $1 billion​

Oct 3 (Reuters) - Office Depot Inc

* Office Depot takes first step in strategic transformation to become business services platform with acquisition of CompuCom

* Office Depot Inc - ‍expects over $40 million in estimated annual cost synergies within two years; acquisition to be accretive in year one​

* Office Depot Inc - deal for ‍approximately $1 billion​

* Office Depot Inc - ‍following transaction, THL will hold an equity position in office depot of approximately 8% of total shares outstanding​

* Office Depot Inc - ‍total consideration of approximately $1 billion, includes repayment of CompuCom debt and issuance of new Office Depot shares​

* Office Depot Inc - ‍under terms of agreement, Office Depot will acquire CompuCom from Thomas H. Lee Partners, L.P.​

* Office Depot Inc - ‍expects to refinance CompuCom’s existing debt with a new term loan of approximately $750 million​

* Office Depot Inc - will finance acquisition with new debt and issuance of approximately 45 million shares of its common stock to THL​

* Office Depot Inc - Office Depot expects to refinance CompuCom ’s existing debt with a new term loan of approximately $750 million​

* Office Depot Inc - sees ‍total reported sales decline between 7-8% for third quarter including store closures​

* Office Depot Inc - ‍existing share buyback plan authorized by board of directors remains in place​

* Office Depot Inc - ‍adjusted operating income for fiscal 2017 is now estimated to be between $400-$425 million, excluding impact of transaction​

* Office Depot Inc - sees ‍between 5-6% decline in comparable retail store sales​ for Q3

* Office Depot-‍updated Q3 and FY guidance is driven three hurricanes in U.S. & Puerto Rico, among other factors

* Q3 revenue view $2.63 billion -- Thomson Reuters I/B/E/S Source text for Eikon: Further company coverage:

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below