Staples

Investment Thesis 

• Market leading business with attractive financial profile and strong cash flow characteristics ​
• Significant cost savings opportunity ​
• Experienced sponsor with strong track record in the consumer / retail sector

Investment Overview

Staples operates in two segments: North American Delivery and North American Retail. The North American Delivery (“NAD”) segment is the largest business-to-business provider of office supplies and other products to large enterprises and small / medium businesses. The North American Retail segment is an office supplies retailer comprised of over 1,000 stores in the United States and 305 stores in Canada.

Over the last several years, under Sycamore’s ownership, Staples has made a number of acquisitions aimed at diversifying away from brick-and-mortar retail stores to focus on its B2B strategy. In 2018, Staples acquired HiTouch Business Services, a provider of office supplies, workspace and IT solutions. Later that year, Staples also acquired Essendant, a nationwide distributor of office supplies. While operating under separate names, the companies share supply chains and various support operations. In 2019, Staples acquired DEX imaging, which provides printers, copiers and other document-imaging technology for offices. Together, these acquisitions help Staples further solidify its position in the B2B market, through its Staples Business Advantage program. This program provides small and medium-size businesses (20 - 250 employees) comprehensive packages for essential business supplies, including general office supplies, breakroom, furniture and other office products.