Staples to Sell Stake in European Unit
More change is on the way for Staples. Reuters reports the office supplies retailer will be selling a controlling stake in its European business to private equity firm Cerberus Capital Management LP for €50 million ($53.65 million) to focus on its North American operations. Staples’ European unit consists of retail stores and an online business in 16 countries, generating around€1.7 billion. Staples said it would still retain 15 percent stake within the European business.
Total Retail's Take: I'm not surprised by the move. This announcement comes two months after rival Office Depot moved to sell its European business. Both companies made headlines earlier this year when its proposed merger fell apart due to antitrust issues. Following the breakup of the deal, Staples moved forward with a new CEO and a $300 million cost-cutting plan, which appears to have included getting out of Europe. We'll see what happens when the deal goes through, which is expected at the beginning of February 2017.
