In an email to Staples associates dated 2/19/08, Ron Sargent Chairman and CEO of Staples, notified associates of the proposed offer made to Corporate Express. Below is the text of the email distributed yesterday.
"Fellow Associates:
Today we have taken a significant step in creating a bigger and better platform for all Staples associates to deliver great service and value to our customers around the world. We are pleased to announce that Staples has made a proposal this morning to acquire Corporate Express, one of the world's leading suppliers of office products.
This acquisition will not only significantly expand Staples' North American Delivery operations, the fastest growing and most profitable part of our business, but will also add successful Contract businesses in Europe, Canada, Australia and New Zealand to our portfolio. In addition to expanding our business into new geographies and customer segments, the acquisition will complement our organic growth, representing the addition of approximately $8 billion in annual sales to Staples' $20 billion business.
Corporate Express has a strong management team leading 18,000 associates in 20 countries, and we believe our combined business and people can be even more successful in building a strong, global delivery business. While Corporate Express has not been receptive to our approaches to discuss a possible business combination, we decided to pursue the proposed acquisition because of the tremendous benefits to both Corporate Express’ and Staples' stakeholders, given the complementary nature of our business and the significant opportunities the combination represents. We hope to meet with Corporate Express’ management and complete an acquisition agreement as soon as possible.
We look forward to officially welcoming Corporate Express to the Staples family in the coming weeks and working together to ensure a smooth transition for all associates, customers and suppliers."
The office products market seems to be heating up a bit. The proposed offer is for 7.25 euros per common share of stock. Staples is touting this as a 60% premium from current market value.
Will stock holders snub this offer like Yahoo investors snubbed the Microsoft offer a couple of weeks ago? Let's wait and see!
Read the official Press Release here: http://phx.corporate-ir.net/phoenix.zhtml?c=96244&p=irol-newsArticle&ID=1109564&highlight=
John
No comments:
Post a Comment