Staples in deal to sell its European operations

Staples will sell a controlling stake in its European operations to private equity firm Cerberus Capital Management for an estimated $53.65 million as the retailer continues to focus on North America following its failed take-over of Office Depot.



Staples’ European operations, which consists of retail, contract and online businesses in 16 countries, will be separated into a privately-held company controlled by an affiliate of Cerberus. The U.S. retailer is retaining a 15% equity interest in the business and will be represented on its board of directors.



The agreement with Cerberus follows Staples’ recent announcement of the sale of its U.K. retail business to Hilco Capital Limited, which also aligned with Staples’ new strategic direction of right-sizing its international business.



“One of our top strategic priorities has been to narrow our geographic focus on North America, and this is an important step toward simplifying our operations and better positioning Staples for sustainable long-term growth,” said Shira Goodman, CEO and president, Staples. “We believe that working with Cerberus will help enable the future success of the Staples Europe business, benefiting our associates and customers in the region.”



The new company will enter into a licensing agreement with Staples for the use of certain Staples intellectual property, including its brand and a global accounts agreement. The company will operate under the Staples banner name and other sub-brands in European markets, and its associates will continue to be employees of Staples Europe, which will maintain its headquarters in Amsterdam.



Olof Persson, an executive with Cerberus’ operations team and the former President and CEO of Volvo Group, will be appointed executive chairman of the new company.