
Platinum to buy Staples' Australia, New Zealand business
US-based private equity firm Platinum Equity has agreed to buy the Australia and New Zealand businesses of business products supplier Staples.
Financial details of the transaction were not disclosed. The businesses will continue to operate under the Staples brand for a short time after the transfer of ownership, but the long-term plan is to build a new corporate brand for the divested stores, Platinum said in a statement. The acquisition is expected to close in the second quarter of 2017.
Staples, headquartered in Boston, sells business products to consumers and enterprise customers through its network of retail stores and various online services. By selling off its Australia and New Zealand branches the company hopes to refocus on its core North American business in line with its plans for long-term growth. According to the company’s most recent annual report, Staples had 10 retail stores and 15 distribution and fulfillment centers across Australia and New Zealand as of April 2016.
“The Staples business in Australia and New Zealand has extraordinary potential as a standalone enterprise,” said Adam Cooper, principal at Platinum. “We look forward to partnering with the management team to make substantial investments to optimize the company’s digital and systems capabilities with a focus on enhancing the customer experience.”
Along with the Staples transaction Platinum announced the close of its latest global buyout fund, Platinum Equity Capital Partners IV, at $6.5 billion. More than 200 LPs from 28 countries participated in the fundraise, according to a separate statement, with investors attracted by Platinum’s value-add capabilities and attention to downside protection.
Founded in 1995, Platinum specializes in carve-outs from large companies, public to private transactions and specialty acquisitions from a variety of private sellers. The firm claims to have completed more than 185 transactions over the last 20 years. Currently it has more than $11 billion in assets under management and a portfolio of about 30 companies worldwide.
Platinum’s previous transactions in Australia include the purchase of Sensis, the directories business of the country’s biggest phone company Telstra Corporation. The GP paid A$454 million ($407 million) for a 70% stake in 2014, with Telstra retaining a 30% holding.
Platinum has been active in Asia recently as well, with investments in the last year including the purchase of two Chinese manufacturing units from Singapore’s Broadway Industrial Group for S$150 million ($111 million) in August. The firm also exited US-headquartered labels manufacturer Mactac to Japanese adhesives producer Lintec Corporation for $375 million in October.
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