Staples and Corporate Express will merge

World’s largest office suppliers firm is getting bigger

by Tom Stundza -- Purchasing, 6/11/2008 11:51:00 AM

U.S. office-supplies giant Staples this morning won its battle to buy Corporate Express after the Dutch firm agreed to a sweetened bid of $2.65 billion and ended its own deal to buy Lyreco of France that was announced last month. The Staples/Corporate Express combination will have annual revenues of $27 billion with more than 94,000 employees in 28 countries.

Already the world's biggest office-supplies retailer, Staples has pursued Corporate Express for four months, aiming to build direct sales to companies and counter slowing demand from U.S. consumers and small businesses. The Reuters News Service reports today that analysts believe the marriage makes strategic sense and could lead to big savings in a slowing U.S. economy against such rivals as Office Depot.

 In a statement from Framingham, Mass., headquarters, Staples says the combination will establish a contract business for Staples in Europe and Canada, while fueling Staples' North American Delivery business in the U.S. The combination also will extend Staples' geographic reach to Australia and New Zealand.

In a statement from Amsterdam headquarters, Corporate Express CEO Peter Ventress says he will become president of Staples International, to oversee Staples’ business outside of the U.S. and Canada and will play a key part in managing the integration of the two businesses going forward. He will report to Ron Sargent, Staples chairman and CEO.