Office Depot Bids to Buy Guilbert Unit

Office Depot Inc. has made a bid to acquire the contract sales business of French office supplies marketer Guilbert S.A. from Pinault-Printemps-Redoute Group for 815 million euros, or $872 million.

Contract sales are usually conducted through electronic data interchange.

The Delray Beach, FL office supplies marketer said the purchase price could increase by 40 million euros, if its stock rises above $20 per share within 18 months of the transaction’s closing.

PPR said it welcomed the offer but must consult with its employees in accordance with European law.

Office Depot said it hopes the transaction will close later this spring.

“This potential acquisition of one of Europe’s leading contract stationers is another solid step in achieving our long term growth strategy in Europe,” said Office Depot CEO Bruce Nelson in a statement.

Last year, competing office supplies marketer Staples Inc. purchased Guilbert’s mail order business for about $807 million. (Direct Newsline, Aug. 22, 2002.

If this acquisition goes through it would give Office Depot consistent delivery contracts in Belgium, Portugal and Spain, where it already has mail order businesses, noted Nelson.