Office supply retailers Office Depot and OfficeMax have completed a merger under the name Office Depot, Inc. OfficeMax now is a wholly owned subsidiary of Office Depot, Inc., and will no longer be publicly traded. Approximately 240 million shares of Office Depot, Inc. common stock were issued to OfficeMax shareholders, representing approximately 45% of the 530 million total shares outstanding.
Now that the merger is complete, Office Depot, Inc., reports that it has more financial stability and flexibility. The company has a combined year-over-year revenue of approximately $17 billion. Total costs savings as a result of the merger are expected to reach nearly $600 million. In addition, there are other potential synergies from approximately $2 billion of other operating expenses related to retail stores.
As of November 2013, Office Depot, Inc., employs nearly 66,000 associates worldwide, and serves customers online and in 59 countries through more than 2,200 retail stores.
Customers will continue to have the ability to interact with the individual Office Depot, Inc., brands the way they usually would, whether in an Office Depot or OfficeMax store, or on each brand’s web sites.
Search For New Leadership
The combined Office Depot, Inc. organization will operate under a new board of directors and appoint a new CEO. In the interim, Neil Austrian, Chairman and CEO of Office Depot, and Ravi Saligram, President and CEO of OfficeMax, will serve as interim co-CEOs.