Staples Inc. has agreed to acquire office-supplies company Essendant Inc. ESND 1.59% in a deal worth $482.7 million in cash, a combination that would strengthen one of the world’s largest office-solutions providers.
After previously resisting overtures from Staples, Essendant said Monday that a sweetened offer from the office-supplies retailer of $12.80 a share was superior to the one it had pending with Genuine Parts Co.
Genuine Parts, a supplier of automotive parts as well as office products, had three days to change its offer, but said Monday it wouldn’t make a new offer and expected the deal agreement to end.
Staples said Friday it would pay the $12 million breakup fee to Genuine Parts as part of its agreement with Essendant.
Staples, which is based in Framingham, Mass., was acquired a year ago by Sycamore Partners, a private-equity firm that also owns about 11% of Essendant, according to FactSet.
The Staples proposal has met with some resistance from Essendant shareholder Pzena Investment Management, which insisted that the Genuine Parts offer was still superior. As of June 30, Pzena was Essendant’s largest shareholder, with 4.87 million shares, for a 12.9% stake.
Essendant, which is based in Deerfield, Ill., agreed in April to combine with S.P. Richards, Genuine Parts’ office-products business. When the deal was announced, the companies said the transaction valued S.P. Richards at about $680 million.
Shares of Essendant rose 3.1% to $13 a share. It has gained 36% for the year.