US private equity firm Platinum Equity has agreed to buy the Australian division of office products business Staples and is now sizing up OfficeMax, which would give the California-based investment company two of the three major office supply chains in Australia.
Platinum Equity, which owns a 70 per cent stake in Telstra's White Pages and Yellow Pages business Sensis, is expected to rebrand Staples once the deal - for an undisclosed sum - has been completed.
Staples, which had about $35 million in annual earnings, employs 1700 people in Australia and New Zealand. Staples' executive leadership team will report to Platinum Equity.
“We look forward to partnering with the [Staples] management team to make substantial investments to optimise the company’s digital and systems capabilities with a focus on enhancing the customer experience,” says Adam Cooper, principal at Platinum Equity.
Shira Goodman, CEO and president, Staples, Inc. says: “Working with Platinum, we believe the Australian and New Zealand businesses will be well-positioned for the future, ultimately helping our customers and associates succeed.”
The Australian Financial Review reports that Platinum could make a bid as early as today for OfficeMax, just one day after signing the agreement to buy Staples' local business.
Platinum Equity, a global investment firm that specializes in mergers and acquisitions, has more than US$11 billion of assets under management.
Meanwhile, Wesfarmers, the owner of Officeworks, is still considering an IPO for the third of Australia’s three major office supply chains.