Friday, September 19, 2014
YOLO COUNTY NEWS
99 CENTS

Office Depot agrees to buy OfficeMax in stock deal

By
From page A6 | February 24, 2013 |

NEW YORK (AP) — Office Depot Inc. said Wednesday it agreed to buy OfficeMax in an all-stock deal that would transform the office supply retail sector. (OfficeMax operates a store in the Oakshade Town Center in Davis.)

Boca Raton, Fla.-based Office Depot Inc. and Naperville, Ill.-based OfficeMax said holders of OfficeMax shares will receive 2.69 shares of Office Depot for every OfficeMax share they own.

That’s equal to about $13.50 per share, based on Office Depot’s $5.02 per share closing price Tuesday, giving the deal a total value of about $1.2 billion. OfficeMax had about 86.7 million shares outstanding as of Oct. 26, according to SEC filings.

Office Depot posted the news in its earnings release on its Web site on Wednesday morning, but the release later seemed to be taken down from the site. Office Depot and OfficeMax did not respond to requests for an explanation.

The move would combine the No. 2 and No. 3 office supply retailer and lead to consolidation in an industry that analysts have said for years is overstored. It reflects the changing retail landscape as “big box” stores become outmoded and more people shop online.

Office Depot and OfficeMax, along with bigger rival Staples Inc., were all founded in the mid- to late 1980s and helped pioneer the big-box boom in the 1990s, expanding rapidly in the United States.

But the rise of Web retailers like Amazon.com and more expansion into office supply categories by discounters like Costco and Wal-Mart has been tough on the sector. In addition, office suppliers were slow to bounce back from the recession, as consumers and small businesses alike cut back on ordering office products.

The companies have closed stores, slashed costs and streamlined operations to offset stagnant sales. Rumors about possible consolidation have swirled around the sector for years but nothing ever materialized.

The Wall Street Journal reported the possibility of the deal on Monday, sending stock across the sector soaring on Tuesday.

Analysts say that if the deal closes it likely would benefit the largest office supply player, Staples Inc. since the combined entity likely will close stores.

“We think a potential merger would result in a significant number of store closings, and thus an improvement in the overall economics of the office supply retail business,” said S&P analyst Ian Gordon on Tuesday. “This area has been under pressure from a weak business spending environment and competition from non-traditional channels like Amazon in our view.”

The office supply sector is worth about $21.2 billion, according to research firm IBISWorld Inc. in Santa Monica. Of that, Staples holds a 35 percent market share, Office Depot 26.1 and OfficeMax 15.6.

Staples is much larger than its smaller rivals, with 2,295 stores worldwide and a market capitalization of $9.56 billion. In contrast, Office Depot’s market capitalization is $1.43 billion and OfficeMax’s is $1.13 billion. Market capitalization is the market value of a company’s outstanding shares and can be used to measure a company’s size.

The deal still has to go through shareholder and regulatory approvals, and office supply mergers have been questioned by regulators in the past. In 1997, Staples Inc. attempted to buy Office Depot but the deal was nixed by the Federal Trade Commission due to concerns the combined company would have too much of a competitive advantage in the marketplace.

Office Depot shares rose 46 cents, or 0.2 percent, to $5.48 in morning trading. OfficeMax shares rose $1.43, or 11 percent, to $14.43 in premarket trading and Staples shares rose 15 cents to $14.80.

Comments

comments

The Associated Press

.

News

School district may redevelop downtown site

By Jeff Hudson | From Page: A1

 
Grant means new push for moving tracks out of town

By Dave Ryan | From Page: A1 | Gallery

Some say council needs to reconsider MRAP

By Dave Ryan | From Page: A1

 
UC to create $250 million venture capital fund

By San Francisco Chronicle | From Page: A1

DUI suspected in crash

By Lauren Keene | From Page: A2

 
Master Gardeners share their wisdom at free workshops

By Enterprise staff | From Page: A2

 
Scots vote to stay in UK

By The Associated Press | From Page: A2

France strikes Islamic State group’s depot in Iraq

By The Associated Press | From Page: A2

 
Man faces arson charge in huge California wildfire

By The Associated Press | From Page: A2

Rabid bat found at Holmes Junior High

By Enterprise staff | From Page: A3

 
Students invited to apply for Blue & White grants

By Enterprise staff | From Page: A3

Halloween costume sale benefits preschool

By Enterprise staff | From Page: A3

 
Telling tales, on ‘Davisville’

By Enterprise staff | From Page: A3

Volunteers sought to make veggie bags

By Enterprise staff | From Page: A3

 
Storyteller will draw on music, dance

By Enterprise staff | From Page: A3

Woodland Healthcare offering flu shots

By Enterprise staff | From Page: A3

 
Putah Creek Bike Path to close temporarily

By Enterprise staff | From Page: A3

 
Little Free Libraries open at Montgomery

By Anne Ternus-Bellamy | From Page: A3

Project Linus seeks donations

By Enterprise staff | From Page: A3

 
Register to vote by Oct. 20

By Enterprise staff | From Page: A4

Free workout class set at library

By Special to The Enterprise | From Page: A4

 
Explorit: Lots of ways to be a volunteer

By Lisa Justice | From Page: A4 | Gallery

 
Sierra Club remembers longtime walker

By Special to The Enterprise | From Page: A4

DHS Classes of 1954 and 1955 will hold 60th reunion

By Enterprise staff | From Page: A4

 
Nonprofits can get DCN’s help

By Enterprise staff | From Page: A4

Davis maps available at Chamber office

By Enterprise staff | From Page: A5

 
Need a new best friend?

By Enterprise staff | From Page: A5 | Gallery

Reception benefits endangered gorillas

By Special to The Enterprise | From Page: A5

 
Downtown history tour planned in October

By Enterprise staff | From Page: A7

Davis hosts its own climate change rally

By Special to The Enterprise | From Page: A8

 
Sutter Farmers Market offers local goods

By Enterprise staff | From Page: A8 | Gallery

Wolk applauds approval of stronger rules for olive oil

By Special to The Enterprise | From Page: A8

 
Qigong classes available for heart health

By Enterprise staff | From Page: A9

.

Forum

Sick of being the bad guy

By Creators Syndicate | From Page: B5

 
Project has safety risks

By Letters to the Editor | From Page: A6

Learn more about Paso Fino

By Letters to the Editor | From Page: A6

 
Educate homeless with dogs

By Letters to the Editor | From Page: A6, 1 Comment

Cheers and Jeers: Not the end of the rainbow

By Our View | From Page: A6

 
Tom Meyer cartoon

By Debbie Davis | From Page: A6

Return to previous plan

By Letters to the Editor | From Page: A6

 
Save the ‘pine cone place’

By Letters to the Editor | From Page: A6

Affirm our community values

By Letters to the Editor | From Page: A6

 
.

Sports

Devils hope the light bulb turns on at Edison

By Enterprise staff | From Page: B1

 
River Cats and Giants sign two-year deal

By Enterprise staff | From Page: B1

Blue Devil volleyballers hold off Herd

By Spencer Ault | From Page: B1 | Gallery

 
Aggies’ new energy could be scary for Big West

By Bruce Gallaudet | From Page: B1

No rest for the weary: Aggie TE Martindale busy on and off the field

By Bruce Gallaudet | From Page: B1 | Gallery

 
Mustangs are no match for DHS boys in water polo

By Enterprise staff | From Page: B2

Take Zona and Bama this week

By Bob Dunning | From Page: B2

 
A’s slide continues as Rangers sweep

By The Associated Press | From Page: B8

.

Features

Name Droppers: Awards keep coming for UC Davis retiree

By Enterprise staff | From Page: A7

 
.

Business

Redesigned 2015 Escalade remains breed all its own

By Ann M. Job | From Page: B3 | Gallery

 
.

Obituaries

Carol L. Walsh

By Special to The Enterprise | From Page: A4

 
.

Comics

Comics: Friday, September 19, 2014

By Creator | From Page: A10

 
.

Real Estate Review

Featured Listing

By Zack Snow | From Page: RER1

Professional Services Directory

By Zack Snow | From Page: RER2

Taylor Morrison

By Zack Snow | From Page: RER3

Malek Baroody

By Zack Snow | From Page: RER4

Norcal Land

By Zack Snow | From Page: RER5

Robin Garland

By Zack Snow | From Page: RER6

Karen Waggoner

By Zack Snow | From Page: RER7

Dana Hawkins

By Zack Snow | From Page: RER7

Martha Bernauer

By Zack Snow | From Page: RER8

Joe Kaplan

By Zack Snow | From Page: RER8

Lynne Wegner

By Zack Snow | From Page: RER8

Remax

By Zack Snow | From Page: RER9

Melrina A Maggiora

By Zack Snow | From Page: RER10

Wells Fargo Home Mortgage

By Zack Snow | From Page: RER11

Julie Leonard

By Zack Snow | From Page: RER11

Coldwell Banker

By Zack Snow | From Page: RER12

Kim Eichorn

By Zack Snow | From Page: RER14

Lyon Real Estate

By Zack Snow | From Page: RER15

Marcelo Campos

By Zack Snow | From Page: RER16

Julie Partain

By Zack Snow | From Page: RER16

Jamie Madison & Associates

By Zack Snow | From Page: RER16

Kim Merrel Lamb

By Zack Snow | From Page: RER17

Bob Bockwinkel

By Zack Snow | From Page: RER17

Juan Ramirez

By Zack Snow | From Page: RER17

Chris Snow

By Zack Snow | From Page: RER18

James Hanna

By Zack Snow | From Page: RER18

Raul Zamora

By Zack Snow | From Page: RER19

Susan von Geldern

By Zack Snow | From Page: RER19

Travis Credit Union

By Zack Snow | From Page: RER20

Jamie Madison

By Zack Snow | From Page: RER21

Karen Waggoner

By Zack Snow | From Page: RER21

Tracy Harris

By Zack Snow | From Page: RER22

Lisa Haass

By Zack Snow | From Page: RER22

First Street Real Estate

By Zack Snow | From Page: RER24