ODand Office Max

8/9/2019 ODand Office Max

1/12

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"


2/12

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"


3/12

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"


4/12

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+"


5/12

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


6/12

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."


7/12

>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


8/12

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"


9/12

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


10/12

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


11/12

Conso.idated resu.ts


12/12

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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