|Staples to Acquire Office and Manufactured Products Unit of Ivan Allen Company|
|WESTBOROUGH, Mass. and ATLANTA--(BUSINESS WIRE)--Oct. 13, 1998--
Staples Inc., (NASDAQ:SPLS) and Ivan Allen Company today announced a
definitive agreement under which Staples will purchase the office and
manufactured products assets of Ivan Allen.
The transaction, subject to government approval under the Hart-Scott-Rodino Act and customary closing conditions, is expected to be completed by the end of the calendar year. No further financial details were disclosed.
The sale includes all assets of Ivan Allen's delivered office and manufactured products operations including those in Atlanta and 14 divisional sales offices in Georgia, South Carolina, North Carolina, Alabama, and Tennessee. The units recorded revenues of more than $60 million in 1997.
Staples also has a delivered office products business, called Staples Contract and Commercial, which recorded about $1 billion in sales in 1997.
The Allen family will continue to operate one of the world's largest steelcase furniture dealerships under the name of Ivan Allen Company. The contract furniture operation plans to continue its aggressive growth in the Southeast market.
"The strong position of the Ivan Allen office products unit in the Southeast marketplace and its reputation for excellent customer relations and top quality employees makes it a very attractive partner for Staples," said Ronald L. Sargent, president, Staples North American Operations. "We plan to aggressively expand in the Southeast region marketplace and are pleased that Ivan Allen will join Staples."
"We are pleased to have found a buyer with Staples' national reputation and the desire to expand Ivan Allen's business," said H. Inman Allen, chairman and chief executive officer of Ivan Allen. "This opportunity will provide Ivan Allen's office products unit with the critical resources needed to compete effectively and grow its revenues."
Sargent said Staples will license the use of the Ivan Allen name for the next two years and will operate as Staples/Ivan Allen as it integrates the business into the Staples Contract and Commercial operations.
Staples is a $5 billion retailer of office supplies, furniture,
and technology to consumer and businesses from home-based businesses
to Fortune 50 companies in the United States, Canada, the United
Kingdom, and Germany. Staples, headquartered outside Boston, invented
the office superstore concept and today is the largest operator of
office superstores in the world. The company, which has grown earnings
per share at a 38 percent compound rate over the last four years, has
over 32,000 associates serving the business customer through 830
office superstores, mail order catalogs, and a contract business. More
information is available on Staples at http.//www.staples.com.
CONTACT: Media Contacts: Dan Kaferle Director, Public Relations 508-370-8635 Staples Inc. email@example.com or H. Inman Allen President and CEO 404-332-3032 firstname.lastname@example.org or Investor Contact: Sam Levenson Vice President, Investor Relations 508-370-7963 Staples Inc. email@example.com