Staples confirms interest in Corporate Express

FRAMINGHAM, Mass. Staples has offered to buy Corporate Express in an all cash deal valued at nearly $3.7 billion, confirming speculation over the past month that Amsterdam-based Corporate Express was a takeover target. In a letter sent to Corporate Express ceo and chairman Peter Ventress, Staples appealed directly to Corporate Express shareholders and encouraged the company to begin discussion with Staples regarding a business combination.

“We believe strongly that a combination between Staples and Corporate Express will offer significant and certain value to Corporate Express’ shareholders and other stakeholders and will greatly enhance our ability to serve customers throughout the world,” wrote Staples chairman and ceo Ron Sargent. “We are writing this letter to demonstrate both our enthusiasm for the proposed transaction and our commitment to pursue a combination with Corporate Express.”

Rumors of the deal in early February caused shares of Corporate Express to surge 33% to closed at $8.60 on Feb. 5 from a close the previous day of $6.49. Throughout most of 2007, the company’s shares traded between $10 and $15 before they began a downward slide later in the year.

“Staples is committed to working with the Corporate Express executive and supervisory boards to quickly enter into an acquisition agreement and begin making the most of the combined business,” according to Sargent.

Staples interest in the company was made public after repeated attempts over the past several months to engage in discussions with Corporate Express were unsuccessful.

Last year, Corporate Express generated 53% of its sales of roughly $8.3 billion from North America with the remainder coming from Europe and Australia.