The company has accepted the offer of $6.9 billion (€6 billion) from the private equity firm.
The New York Times reported that Staples has agreed the sale of its company and said that this was just one more casualty of online shopping.
Sycamore Partners will now take on the declining company that despite all its efforts has shown falling sales and profits which came after a judge deemed that the merger of Staples and Office Depot would not be allowed to happen.
Previously Staples said: “We also compete with online retailers such as Amazon.com, mass merchants such as Walmart and Target, warehouse clubs such as Costco, computer and electronics retail stores such as Best Buy.”
Since shareholders had lost confidence in the company and share prices had fallen the board and management decided to accept the offer from Sycamore partners and the article noted that “Investors can take some measure of solace from this deal. Sycamore’s offer of $10.25 a share represents a 20 percent premium over the company’s stock price in early April, before initial reports of a deal to sell the company lifted shares”.
Robert Sulentic, Chairman, Staples, said: “Staples’ board believes that this process has led to a transaction which is in the best interests of our stockholders, as well as Staples and its employees.”
It was also noted that despite being in decline Staples “has very little debt” and that financing for the deal is through a consortium of banks which includes; UBS, Bank of America Merrill Lynch, Deutsche Bank, Credit Suisse, Royal Bank of Canada, Jefferies, Wells Fargo Bank and Fifth Third Bank. Subject to shareholder agreement the deal is expected to be finalised by the end of the year.