Staples, Inc. (NASDAQ: SPLS) saw its stock perk in mid-morning trading on Thursday, on word it was a takeover target.
A story which circulated Wednesday reported that Sycamore Partners is in advanced talks to acquire Staples. Sources told the news service a deal could be valued at more than $6 billion and could be announced next week.
The report also says Sycamore is in the process of finalizing a debt financing package after it outbid another P-E firm, Cerberus Capital Management.
Private-equity acquisitions of retailers have become increasingly rare as the industry struggles, but folks in the know say Sycamore has been more bullish on the sector with prior investments such as department store operator Belk, discount general merchandise retailer Dollar Express and mall and web-based specialty retailer Hot Topic.
The acquisition would come a year after a U.S. federal judge thwarted a merger between Staples and peer Office Depot Inc. (NASDAQ: ODP) on antitrust grounds.
Staples, which made its name selling paper, pens and other supplies in retail stores, reported a smaller-than-expected fall in first-quarter comparable sales last month, while its profit met analyst estimates, helped by a growth in demand for facilities, breakroom supplies and technology solutions.
Staples has more than 1,200 stores in the United States and just more than 300 in Canada. It has the largest market share of office supply stores in the United States at 48%, and sources say its share has increased since 2011.
Staples shares soared 69 cents, or 7.9%, to $9.34 late Thursday morning, within a 52-week range of $7.24 to $10.25.
