By Lisa Kerner
Charlotte, N.C., June 11 - Corporate Express NV approved Staples, Inc.'s latest offer to acquire the company for €9.25 per ordinary share, or €3.1 billion, a Staples news release said.
On June 3, Staples was willing to pay €9.15 per share for the company, up from its original offer of €7.25 per share made in February.
Staples said the merger will extend the company's geographic reach to Australia and New Zealand and establish the company as a premier provider of office products to businesses of all sizes.
Prior to reaching the agreement, it was reported that Staples subsidiary Staples Acquisition BV purchased 1.1%, or 2,085,403 ordinary shares, of Corporate Express' outstanding ordinary shares for €9.25 per share.
Staples Acquisition will pay the same €9.25-per-share price in the tender offer it began on May 19 and expects to end on June 27.
Corporate Express terminated its merger agreement with Marly, France-based office supply company Lyreco SAS, valued at €1.7 billion, as part of its deal with Staples, the release noted.
Staples said it has funds available under a credit agreement, cash reserves and funds available under its existing revolving credit facility that are sufficient to finance the acquisition.
Both companies said they expect to close the merger in July after which Corporate Express chief executive officer Peter Ventress will become president, Staples International, overseeing Staples' business outside of the United States and Canada.
Ventress will report to Ron Sargent, chairman and CEO of Staples.
The Corporate Express executive board will consist of Ventress and Floris Waller. Additional people designated by Staples will be nominated for appointment to the executive board and to the supervisory board at the first shareholders meeting following settlement of the offer.
Staples is an office superstore based in Framingham, Mass.
Corporate Express is a business-to-business office supply company based in Amsterdam.
| Acquirer: | Staples, Inc.
|
| Target: | Corporate Express NV
|
| Announcement date: | June 11
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| Transaction total: | $3.1 billion
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| Price per share: | €9.25
|
| Expected closing: | July 2008
|
| Stock price of target: | NYSE: CXP: $14.00 on June 10
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