Staples, the world’s largest office supply company, has made an offer for the remaining minority of shares in Corporate Express Australia. They acquired a controlling 58.6% of CE Australia’s shares nearly two years ago, and will be paying around $400 million for the remaining shares.
Shareholders are being offered A$.560 ($5.16) per share, with shareholder dividend creating a final amount of A$5.725, a 25 percent premium on CE Australia’s current share price as of 16 March.
CE Australia’s board are unanimously recommending the offer, and have already signed an implementation agreement with Staples, which means the deal should proceed easily unless shareholders reject it or a third party offers more.
The offer represents a significant investment from Staples, but also stands to be a worthwhile one, as CE Australia recorded a net profit of A$57.2 million after profit last year. Based on Staples’ share offer, CE Australia is valued at around £1 billion.
It also represents a continuation of Staples’ commitment to recycling, as Corporate Express have been vocal supporters of toner cartridge recycling and reuse, as well as other products such as paper, with their EarthSaver promise.
Staples themselves have offered increasing incentives for consumers to recycle their cartridges, with customers currently able to earn $3 in rewards for every cartridge they hand in.