NEW YORK (AP) - Office Depot and OfficeMax have agreed to merge in an all-stock deal that would transform the $21.2 billion office supply retail sector.
Office Depot (ODP), based in Boca Raton, Fla., and OfficeMax (OMX), based in Naperville, Ill., say holders of OfficeMax shares will receive 2.69 shares of Office Depot for every OfficeMax share they own.
That's equal to about $13.50 per share, giving the deal a total value of about $1.2 billion.
Both companies' shares were higher Tuesday on reports of the deal. OfficeMax stock rose $2.25 or 21% to $13.00; Office Depot stock was up 43 cents or 9.37% to $5.02.
Analyst say if the deal closes it would likely benefit the largest office supply player, Staples (SPLS), because the combined entity will likely close some stores. Staples stock was up $1.70 Tuesday or 13.13% to $14.65 a share.
Office Depot has 1,675 stores worldwide, mostly in the U.S. and Canada. OfficeMax has about 900 stores in the U.S. and Mexico.
Contributing: USATODAY.com staff