Office Depot agreed to acquire OfficeMax in all stock deal that will create a company with total sales of $18 billion. The new company will trail Staples Inc with largest revenues in the office supply category with sales of $24 billion.
Under the merger agreement, Office Depot will offer 2.69 new shares in exchange of each share of OfficeMax. The merger proposal values OfficeMax at $13.50 a share based on the closing price of Tuesday.
The committee of equal representation from both companies will search for new chief executive and consider chief executives of both companies and outside candidates for the position.
Office Depot based in Boca Raton, Florida has 1,675 stores and employed 39,000 with global sales of $11.5 billion.
OfficeMax based in Naperville, Illinois employed 29,000 with a network of 900 stores and $7 billion in sales.