Office Depot will buy OfficeMax in a deal announced today.
The two office supply giants announced the signing of a “definitive merger” today intended to “create a stronger, more efficient global provider better able to compete in the rapidly changing office solutions industry.”
Office Depot has a store in Minnetonka, located at 1005 Plymouth Road.
There is currently no OfficeMax in Minnetonka, but there are stores nearby in Eden Prairie, St. Louis Park and Chanhassen.
According to a news release posted on the OfficeMax website:
"OfficeMax Incorporated (NYSE:OMX) and Office Depot, Inc. (NYSE:ODP) today announced the signing of a definitive merger agreement under which the companies would combine in an all-stock merger of equals transaction intended to qualify as a tax-free reorganization.
The transaction, which was unanimously approved by the Board of Directors of both companies, will create a stronger, more efficient global provider better able to compete in the rapidly changing office solutions industry.
Customers will benefit from enhanced offerings across multiple distribution channels and geographies. The combined company, which would have had pro forma combined revenue for the 12 months ended December 29, 2012 of approximately $18 billion, will also have significantly improved financial strength and flexibility, with the ability to deliver long-term operating performance and improvements through its increased scale and significant synergy opportunities.
Under the terms of the agreement, OfficeMax stockholders will receive 2.69 Office Depot common shares for each share of OfficeMax common stock."
In a letter to MaxPerks members, OfficeMax CEO and President Ravi Saligram wrote:
“The combined company will build on the best of both organizations to give you even more product choices, advanced technology and printing services, and new innovations to help you work better in business and at home every day. By integrating our network of retail stores, direct sales, telesales and online environments, we'll provide you multiple ways to connect with us.
Over the last six months, OfficeMax has added new technology support, cloud and website services. Recognizing the impact of economic and tax changes to the bottom line, we want to help make every dollar you spend work even harder by providing more everyday MaxPerks and weekly promotion value.”
Saligram wrote that OfficeMax expect the merger transaction to close by the end of calendar year 2013, subject to customary closing conditions.
Until then, OfficeMax and Office Depot will remain separate companies, and each company will maintain its current rewards program.