Office Max and Office Depot Merger

 Posted on March 16,2013 in Uncategorized

If you are anything like most people, when you run out of paper, need highlighters or just a pack of paper clips, the easiest thing to do is just to run to OfficeMax…or is it Office Depot? Oh, who knows – but it is the office store of guarantee just down the road. Soon, however, it won't make a difference; odds are the name might even be different.

OfficeMax and Office Depot are merging! Details about where the new merged company will be headquartered and even who will run it all is still up in the air, but Office Depot has declared it will issue 2.69 new shares of common stock for every outstanding common share OfficeMax has.

Both companies are a presence in the U.S. market with OfficeMax running 978 stores with 29,000 employees and Office Depot running 1,675 stores with 39,000 employees. With the two merging together, some stores will have to close because of proximity – an estimation of about 600 stores. This will help competitors like Staples.

Although it is still dependent on the Federal Trade Commission's approval, the merger is valued at about $976 million. Combined sales would be $18 billion and savings would reach about $400 to $600 million over three years. Board members would be chosen equally by both sides. Shareholders of Office Depot would be 54% owners while OfficeMax would be 46%.

Business mergers can be great for shareholders and consumers. If you are in a position to merge with another company,contact a business attorney who will know all the legalities in the Naperville area.