Platinum snaps up Staples’ Australia and NZ business

The deal by the Los Angeles-based firm comes shortly after it raised $6.5bn for its fourth global buyout fund.

Platinum Equity has acquired the Australia and New Zealand business of office supplies company Staples.

Financial details were not disclosed.

Commenting on the deal Adam Cooper, principal at Platinum Equity, said: “The Staples business in Australia and New Zealand has extraordinary potential as a standalone enterprise. It has a strong customer base, dedicated employees and a long history in the markets it serves.”

Cooper adds that the firm’s investment will be used to optimise the company’s digital and systems capabilities with a focus on enhancing the customer experience.

NASDAQ-listed Staples sells business products and services such as laptops, office supplies and furniture across North and South America and Asia.

Following the acquisition, the divested business will continue to operate under the Staples brand in Australia and New Zealand for a short period of time while a new corporate brand is created.

The transaction is expected to close in the second quarter of 2017. Morgan Stanley served as financial advisor to Staples on the transaction, while Baker McKenzie served as the legal advisor to Platinum.

Platinum Equity has over $11 billion of assets and has made investments in more than 185 companies. The firm’s recent acquisitions include Atlanta-headquartered IT services company Data Blue and Columbus-based infrastructure technology company Vertiv.

The firm is currently investing from its latest global buyout fund on $4.5 billion Platinum Equity Capital Partners IV, which it closed this week, as well as its predecessor 2011-vintage $3.75 billion Fund III.