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S T U D E N T S : I O A N A F L O R E A
R U X A N D R A P E T C U
Mergers and AcquisitionsOice De!ot and OiceMa"
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Descri!tion o t#e co$!anies % Oice De!ot
One of the world's largest sellers of office products
Founded: March 1986
Headquarters: Boca Raton Florida !"#"$"
%u&er of stores worldwide: 1"6(8"
)&plo*ees: 66"+++ that ser,es custo&ers in 6+ countriesaround the world"
#ales -hannels : office suppl* stores a contract sales forceinternet sites direct &ar.eting catalogues and call centers"
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Descri!tion o t#e co$!anies & OiceMa"
/ro,ides office supplies and paper technolog* products andsolutions pac.aging supplies and equip&ent health and h*gieneproducts cafeteria supplies and &achines and furniture to large
&ediu& and s&all usinesses education pro,iders and consu&ersFounded: 1988
Headquarters: %aper,ille 0 !"#"$"
%u&er of stores worldwide: 921"
)&plo*ees: 39+++ that ser,es custo&ers in in 2( states /uertoRico the !"#" 4irgin 0slands and Me5ico"
#ales -hannels : field salespeople outound telesales catalogs0nternet and office products stores"
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Reasons or t#e $erge
Office epot decided to &erge with OfficeMa5 lead * thedesire to get closer to #taples 0nc" the largest !"#" office7supplies chain as the sales started to go down in 3+13"
he reason OfficeMa5 decided to &erge with Officeepot was the co&pan*s need to sur,i,e as theco&pan* started to lose sales to online ri,als Officeepot and #taples"
he results of 3+13 &ar.ed the si5th *ear of fallingsa&e7store sales for oth co&panies"
he shares of oth co&panies fell with Office epotdropping the &ost since $pril 3+1+"
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Stages o t#e $erger
On Fe'ruar( )*t# +,)* Office Ma5 and Office epot announced&erger of equals to create 18 illion ;loal Office #olutions -o&pan*
On -u.( /t# +,)* Office epot closes sales of
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Transaction detai.s
he transaction was ai&ed to create a stronger &oreefficient gloal pro,ider etter ale to co&pete in therapidl* changing office solutions industr*"
he co&ined co&pan* will also ha,e significantl*i&pro,ed financial strength and fle5iilit* with theailit* to deli,er long7ter& operating perfor&ance andi&pro,e&ents through its increased scale andsignificant s*nerg* opportunities"
!nder the ter&s of the agree&ent OfficeMa5stoc.holders will recei,e 3"69 Office epot co&&onshares for each share of OfficeMa5 co&&on stoc."
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>e* strategic enefits of the transaction
Merger o equa.s2 structure3
En#anced inancia. !eror$ance3
Signiicant s(nerg( o!!ortunities3
Financia. strengt# and .e"i'i.it(3Increased sca.e and co$!etiti0eness3
4roader g.o'a. oot!rint3
I$!ro0ed custo$er e"!erience to 'ui.d 'rand .o(a.t(3
Acce.erated inno0ation3
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T#e integration !rocess
Office epot and OfficeMa5 continue to partnerclosel* with he Boston -onsulting ;roup a gloal&anage&ent consulting fir& that was retained in
Ma* to pro,ide integration support" $n 0ntegration Manage&ent Office ?0MO@ has een
estalished to guide da*7to7da* integration designand planning ensure interdependencies and ris.s
are identified and &a.e certain that &itigationplans are de,eloped"
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Oice De!ot and Oice Ma" co$!.ete $erger Transaction inor$ation
OfficeMa5 is now a wholl* owned susidiar* of Office epot 0nc" and will no longer e pulicl* traded"
0n total appro5i&atel* 32+ &illion shares of Office epot 0nc" co&&on stoc. wereissued to OfficeMa5 shareholders representing appro5i&atel* 2A percent of the A=+&illion total shares outstanding"
he co&ined co&pan* will use the na&e Office epot 0nc" and will trade on the%ew or. #toc. )5change under the s*&ol O/" Office epot 0nc"
he new Office epot 0nc" which would ha,e had co&ined re,enue for the 13&onths ended #epte&er 38 3+1= of appro5i&atel* 18 illion now e&plo*saout 66+++ associates worldwide"
he co&pan* ser,es consu&ers and usinesses in A9 countries with &ore than
33++ retail stores award7winning e7co&&erce sites and a dedicated usiness7to7 usiness sales organiCation D all deli,ered through a gloal networ. of wholl*owned operations
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Conso.idated resu.ts
Office epot 0nc" results for the first quarter of 3+12 include thefinancial results fro& OfficeMa5 whereas reported first quarter3+1= results include onl* the financial results of Office epot"
0n the first quarter of 3+12 Office epot reported an operating
loss of (9 &illion and a net loss attriutale to co&&onstoc.holders of 1+9 &illion or +"31 per share"
$d
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Conso.idated resu.ts
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One (ear anni0ersar( o t#e Oice De!ot5OiceMa"$erger
O,erall the first *ear as a new co&pan* has een a huge success"
Office epot has increased its outloo. for full *ear 3+12 ad
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