Staples Not Pulling Back on Openings

FRAMINGHAM, MA-Despite a second year of declining comp-store sales Staples remains on track with its 2008 expansion plans, executives said at the company’s second quarter conference call.

The company will open approximately 100 stores in North America this year, in line with original projections. During the quarter, the company also opened three stores in Portugal and its first unit in South America, in Argentina.

"We are maintaining our strong pace of new store openings," said Michael A. Miles, Jr., president and COO.

During the last quarter, the company finalized its acquisition of Corporate Express. Integration is proceeding well, the company said.

For the quarter, total company sales were $5.1 billion, up 18% from the second quarter of 2007. Net income was $150 million, a 16% drop. North American comparable store sales declined 7%. Comparable store sales in Europe also declined 7%.

At the end of the quarter, Staples operated 1,802 stores in North America, 337 stores in Europe, 31 stores in China, and one store in Argentina.

Source: GlobeSt.

Corporate Express accepts $2.7B Staples offer

AMSTERDAM, Netherlands - The Dutch office supplies distributor Corporate Express NV accepted a sweetened buyout offer Wednesday of about $2.7 billion from U.S. office supplies retailer Staples Inc.

Staples, which doggedly pursued the deal to broaden its reach in Europe, raised its offer four times, the last two after Corporate Express made a bid for Lyreco of France in a defensive maneuver. Corporate Express is calling off that deal.

The board of Corporate Express said it decided to endorse the Staples deal and recommend it to shareholders after the U.S. company raised its offer to 9.25 euros ($14.36) per share, up from the previous bid of 9.15 euros.

Including Corporate Express debt being assumed, Staples said the transaction is valued at about 3.1 billion euros ($4.8 billion).

Staples is the world's largest seller of office supplies on the basis of its strength as a retailer in the U.S. market. Corporate Express is the largest distributor, selling only to companies.

"This acquisition establishes Staples as the world's premier provider of office products to businesses of all sizes," Staples said.

Corporate Express had 2007 sales of 5.6 billion euros ($8.8 billion), compared to $19.4 billion (12.4 billion euros) for Staples, which is based in Framingham, Mass.

Amsterdam-based Corporate Express said it has broken off its agreement to buy Lyreco, which is entitled to a breakup fee of 30 million euros ($46 million) as a result.

The Staples deal will be presented to Corporate Express shareholders for approval at a meeting on June 18.

Corporate Express shares rose 1.4 percent to 9.20 euros ($14.23) in early trading in Amsterdam.

Ron Sargent, the chief executive of Staples said the hard-fought takeover was a "win for customers, employees and shareholders."

It was certainly a win for Corporate Express shareholders. The company's stock had been trading near 4 euros in February when rumors of Staples' interest began circulating.

Staples' initial offer of 7.25 euros per share was later raised to 8 euros per share, and last month Corporate Express agreed to combine with Lyreco in what was seen as a move to either evade Staples' embrace or force a higher bid from the U.S. company.

On June 3, Staples raised its bid to 9.15 euros, and two days later Corporate Express said they had entered talks.

The offer closes on June 27 and Staples said it expected the deal to close in July.

Corporate Express Chief Executive Peter Ventress will head Staples' international operations, which will be headquartered in Amsterdam.

Source: The Sentinel Online

Staples stores will soon rent DVD movies

Staples Inc., the Framingham-based office supplies retailer, confirmed today that it will begin offering a limited selection of DVD movie rentals at its US stores in mid June.


"A new in-store 'no-return' DVD rental service, called Flexplay, will let customers rent the latest movie titles without having to return them to the store," a Staples spokeswoman wrote in an e-mail. "Ideal for business travelers and busy small business owners on-the-go, Flexplay will offer a fresh selection of hit movies for viewing anytime, anywhere, and uses a patented technology that erases the DVD after 48 hours of opening the inner package. Customers can safely recycle the DVDs with their other plastics."


According to its website, Flexplay Technologies Inc. of Atlanta is a developer and a supplier of limited-life optical media technology; Flexplay time-limited DVDs offer unlimited, perfect quality DVD playback in any standard DVD player, but only within a pre-set viewing window that begins when the use opens the sealed Flexplay DVD package.

Shortly after the viewing period elapses, the Flexplay DVD becomes unplayable and can be safely recycled or discarded, the company said.



Source: The Boston Globe

Staples still plans bid for Corporate Express

Staples Inc. on Tuesday confirmed its intention to offer to buy out its major competitor in Europe, Corporate Express, for about $3.8 billion.

In February, the Framingham, Mass.-based office supply retailer (Nasdaq: SPLS) saw their offer of $7.25 per share rejected by the Dutch company. Corporate Express (NYSE: CXP) rejected the unsolicited bid, and stated that the offer "significantly undervalues the company and fails to reflect Corporate Express' prospects."

In Tuesday's statement, Staples officials said the proposal represents a premium of approximately 67 percent to Corporate Express' closing share price on Feb. 4, the last day before rumors of a potential offer for Corporate Express circulated in the market, and a premium of approximately 33 percent to Corporate Express' closing share price on Feb. 18, the day before the initial press release.

"While we continue to be disappointed that Corporate Express' executive and supervisory boards have not entered into a negotiation with us about the transaction, we remain very enthusiastic about a combination between the two companies," said Ron Sargent, Staples chairman and CEO. "Based on public information, Staples firmly believes its proposal is the most valuable option available to Corporate Express' shareholders and will deliver significant benefits for customers and employees."

Source: Boston Business Journal