Sycamore Partners, the private equity group that announced Wednesday it had agreed to acquire Staples for $6.9 billion, plans to split the office supply retailer into three separate businesses, according to a report Thursday in The Wall Street Journal that cited unnamed sources. A spokesperson for Sycamore Partners declined to comment on the story.
The plan, according to the Journal, would break up Staples’ U.S. retail, Canadian retail and corporate-supply units into three separately financed entities under the same “corporate umbrella.” As the Journal reports, “The move is designed to make the leveraged buyout of Staples ... an easier sell to bond and loan investors whose appetite for retail names has soured as the industry’s prospects have waned.”. . . more