Staples Approves Acquisition by Sycamore Partners

Originally written by Andy Braithwaite and published at Opi

Staples shareholders approve sale

Opi reports that Staples Inc’s acquisition by private equity firm Sycamore Partners is on track to be finalised shortly after the office supplies reseller’s shareholders overwhelmingly approved the transaction.

At a special shareholder meeting held in Boston (MA) on 6 September, stockholders representing more than 473 million Staples shares voted in favour of the acquisition, while the number against was just over 19 million. There were about four million abstentions.

However, the shareholders rejected by a ratio of around 2-1 a proposal to approve ‘golden parachute’ payments potentially totalling up to $20.7 million. These would be payable to certain senior executives to offset possible tax liabilities on severance and equity-based payments due in relation to the acquisition.

This golden parachute vote, though, was conducted on a “non-binding advisory basis” and the board may still choose to grant these parachute provisions in order to discourage senior execs – including CEO

Opi reports that Staples Inc’s acquisition by private equity firm Sycamore Partners is on track to be finalised shortly after the office supplies reseller’s shareholders overwhelmingly approved the transaction.

At a special shareholder meeting held in Boston (MA) on 6 September, stockholders representing more than 473 million Staples shares voted in favour of the acquisition, while the number against was just over 19 million. There were about four million abstentions.

However, the shareholders rejected by a ratio of around 2-1 a proposal to approve ‘golden parachute’ payments potentially totalling up to $20.7 million. These would be payable to certain senior executives to offset possible tax liabilities on severance and equity-based payments due in relation to the acquisition.

This golden parachute vote, though, was conducted on a “non-binding advisory basis” and the board may still choose to grant these parachute provisions in order to discourage senior execs – including CEO Shira Goodman (pictured) and CFO Christine Komola – from exercising “good reason” resignation rights immediately following the closing of the Sycamore acquisition.

With Staples having reached agreement at the end of August on several class action lawsuits that had been filed in relation to the Sycamore deal and now this shareholder approval, the transaction is expected to close in the next few weeks.