Staples makes takeover bid for Essendant
| 17 May, 2018
Essendant has confirmed that it received an unsolicited takeover bid from Staples.
The wholesaler reports that on April 17, 2018, Staples communicated its initial proposal to, which it declined after a thorough review by its Board in consultation with its financial and legal advisors.
Staples sent a revised proposal on April 29, 2018 stating that it believed it will be able to identify incremental value opportunities to enable it to increase its offer significantly. On May 4, 2018, in consultation with its financial and legal advisors, Essendant's Board determined that Staples' revised proposal is reasonably likely to lead to a "Superior Proposal" as defined in Essendant’s merger agreement with Genuine Parts Company. Essendant say that there can be no assurance that the Staples proposal will result in a transaction.
On April 12, 2018, Essendant entered into a definitive merger agreement to combine Essendant and Genuine Parts’ S.P. Richards business. Essendant says that its board has not changed its recommendation that Essendant's shareholders vote in favour of that transaction.