|Staples Shareholders Approve Staples.com Foldback; Vote allows company to fully integrate Staples.com with its catalog and stores|
BOSTON--(BUSINESS WIRE)--Aug. 27, 2001--Staples, Inc. (Nasdaq: SPLS) and Staples.com shareholders today voted to reclassify Staples.com tracking stock into Staples common stock.
The reclassification, which passed with approximately 85 percent of the vote, will allow the Framingham, Mass.-based company to fully integrate Staples.com with its catalog business and its retail stores through its in-store Staples.com access points.
"We are heartened that shareholders in both Staples and Staples.com have voted in favor of the foldback," said Staples Chairman and CEO Thomas G. Stemberg. "The integration of Staples.com with our catalog and retail stores is the smartest and most efficient way to run our business and to offer our customers three ways to shop. The Staples.com tracking stock structure has been the only obstacle in fully implementing this vision."
Staples has found that its shoppers are increasingly purchasing through multiple channels, with many customers shopping all three - the Staples stores, catalog and Staples.com. Customers who shop all three channels spend on average 4.5 times as much per year as customers who only shop the Staples stores. By integrating the catalog operation with Staples.com, Staples hopes to achieve synergies and efficiencies in how it markets to and services customers in both operations.
Each share of Staples.com tracking stock will convert into 0.4396 share of Staples common stock.
Staples, Inc. is an $11 billion retailer of office supplies, business services, furniture and technology to consumers and businesses from home-based businesses to Fortune 500 companies in the United States, Canada, the United Kingdom, Germany, the Netherlands and Portugal. Headquartered outside Boston, Staples invented the office superstore concept and today is the largest operator of office superstores in the world. The company has over 50,000 employees serving customers through more than 1,300 office superstores, mail order catalogs, e-commerce and a contract business. More information about the company is available at http://www.staples.com.
Certain information contained in this news release constitutes forward looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors including risks related to Staples' ability to compete in its highly competitive market, Staples' ability to continue to successfully open new stores, Staples' quarterly operating results being subject to significant fluctuation, Staples' stock price fluctuating based on the expectations of professional securities analysts, the strain on operations due to Staples' rapid growth which can affect operating results, the ability of Staples' foreign operations and Staples.com to become profitable and the ability of Staples to obtain adequate future financing. Additional information concerning these factors is contained in Staples' Annual Report on Form 10-K dated March 15, 2001, which is on file with the Securities and Exchange Commission.