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Office Depot Gets $350M Infusion

BOCA RATON, FL-The new investment gives BC Partners a 20% stake in the retailer.

By Carl Cronan | Updated on June 23, 2009

BOCA RATON, FL-Locally based Office Depot Inc. has received a $350-million investment from private equity firm BC Partners Ltd., giving it a 20% stake in the office supplies retailer. In exchange for the cash infusion, three of the London-based firm’s executives have been named to Office Depot’s board of directors.

BC Partners on Tuesday purchased $275 million worth of Office Depot’s newly created 10% Series A redeemable convertible perpetual preferred stock, plus $75 million in 10% Series B redeemable conditional convertible perpetual preferred stock. Office Depot, which has 1,600 stores worldwide and annual sales of $14.5 billion, says it will use the proceeds for general corporate purposes.

Steve Odland, Office Depot chairman and CEO, stated in a release that BC Partners has “a very successful investment track record” and works with companies to implement long-term strategic plans. “This investment, combined with the continued success of our liquidity and cash flow initiatives, significantly strengthens our balance sheet,” Odland said.

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