Sycomore Seeking to Take $1 Billion out of Staples, May Be Considering Sale
Bloomberg reports that private-equity firm Sycamore Partners is seeking to take most of its cash out of Staples Inc. “through a recapitalization that will saddle the company with roughly $1 billion of additional debt, according to people with knowledge of the plan.”
Last month, Staples announced that it had signed an agreement to acquire DEX Imaging, a leading independent U.S. document-imaging technology dealer, for an undisclosed sum.
Sycamore may also be considering selling Staples, one source said.
If Sycamore can sell this debit, it would allow it to recoup about two-thirds of the $1.6 billion it put up last year to buy Staples’ B2B corporate office-supply business, which Dex would be a part of, leaving it with about $600 million of equity in the unit.
- February 2019: Staples to Acquire Office-Equipment Dealer DEX Imaging
- September 2018: Staples Now Providing Nuance Print-Management, Document-Capture Solutions
- September 2017: Sycamore Partners Completes Staples’ Acquisition, No Longer a Public Company
- March 2017: Staples Sells European Business to Cerberus Capital
- March 2017: Staples to Close 70 Stores in U.S. and Canada as it Focuses on ‘Business Services’