Corporate Express Inc., a B2B supplier of essential office and computer products and services, recently announced a definitive agreement with US Office Products Company to purchase US Office Product's (USOP's) North American office products assets, including certain stand-alone furniture businesses, for a purchase price of $250 million. The combined company is expected to have North American revenues of over $5 billion. USOP'S North American office products operations will be integrated into Corporate Express' North American operations.
The transaction should result in substantial advantages to Corporate Express' and USOP's customers, including greater access to office and computer supplies and services, enhanced economies of scale and improved customer service levels.
This transaction is an excellent opportunity for our combined customers, employees and suppliers and part of our continuing effort to provide the best customer service and quality in the office products industry, said Robert King, president and CEO of Corporate Express' North American Operations. It is also a great opportunity to increase our scale and take advantage of synergies to leverage our infrastructure. When we consider USOP's talented and experienced sales force, strong long-term customer relationships and significant mid-market presence, we're excited about the prospects for the combined company.
Corporate Express' leadership position, well-capitalized financial structure and focus on customers and employees, makes for a good fit between our companies, said Warren Feldberg, USOP's president and CEO. We've evaluated all of our possible courses of action and firmly believe that this sale to Corporate Express presents the best opportunity for all of our associates, customers and suppliers.
To facilitate the sale of the office supplies and furniture business to Corporate Express, USOP announced separately that it and certain subsidiaries have voluntarily filed petitions in the U.S. District Court in Delaware for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The sale is subject to satisfaction of certain conditions including bankruptcy court and governmental approvals.
