Staples agrees to $6.5 billion buyout

FILE - In this Nov. 15, 2011, file photo, a Staples office supply store is photographed in Miami. Staples Inc. says nearly 1.2 million customer payment cards may have been exposed during a security breach earlier in 2014. (AP Photo/Lynne Sladky, File)
FILE - In this Nov. 15, 2011, file photo, a Staples office supply store is photographed in Miami. Staples Inc. says nearly 1.2 million customer payment cards may have been exposed during a security breach earlier in 2014. (AP Photo/Lynne Sladky, File)

A year after regulators rejected a proposed merger with rival Office Depot, Staples has agreed to sell itself to the private equity firm Sycamore Partners for $6.9 billion.

The companies said Wednesday that shareholders of Framingham, Mass.-based Staples will get $10.25 per share. Staples' stock closed Wednesday up 77 cents, or 8.4 percent, to $9.93, fueled by a late-afternoon report of a deal.

Changing shopping patterns, like the shift to online buying, have hurt office-supplies megastores like Staples. Amazon has become a prime competitor to Staples for corporate customers. Staples' sales have declined 6.1 percent over the past five years to $18.2 billion.

The deal with New York-based Sycamore Partners will allow Staples to adjust to the challenges as a private company.

Staples Inc. is the largest "big box" office-supply chain, but it cut the number of stores it runs to roughly 1,600 from nearly 2,300 in 2012. In Chattanooga, Staples continues to operate stores on Highway 153 in Hixson and on Hamilton Place Boulevard in East Brainerd.

Last year, Staples shredded a proposed $6.3 billion merger with rival Office Depot after encountering stern resistance from antitrust regulators that culminated in a federal judge blocking the deal.

Sycamore Partners' Managing Director Stefan Kaluzny said the deal will help Staples pursue its long-term strategy.

"With an iconic brand, a winning strategy, and dedicated and passionate associates who are deeply focused on the customer, Staples is truly an outstanding enterprise," Kaluzny said.

The companies said they expect this deal to close by the end of the year.

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