Corporate Express said that they will acquire Lyreco SAS of France for $2.71 billion. The acquisition has put a stop to U.S. rival Staples’ hostile bid. The combination of the two companies would result in a leading global office products supplier totaling over $12 billion annually.
Lyreco shareholders have already approved the transaction and are expected to receive 102.5 million ordinary shares, which is 30 percent of its outstanding capital, $880 million in cash and $534 million as a vendor loan note. Eric Bigeard will be CEO and Corporate Express CEO Peter Ventress will become COO and current CFO Floris Waller will remain at that position.
Mr. Bigeard said, “The combination of Corporate Express and Lyreco will create a formidable player in our market. We share a vision on the industry and strategic direction.” Staples made an original takeover-bid for Corporate Express for $11.4-per-share, and later a bid of $12-per-share, which valued the Dutch company at $4.4 billion. Both bids were rejected.