Staples and Essendant finalize merger (1/30/19)
The office products suppliers said today they completed the deal under which Staples is acquiring Essendant, following a conditional approval last week by the Federal Trade Commission.
We value the relationships the resellers have built with Essendant and look forward to helping them build on their already impressive success.
“Staples views the reseller community as partners in serving customers that will allow us all to be successful,” Staples CEO Sandy Douglas said in a prepared statement today. “We value the relationships the resellers have built with Essendant and look forward to helping them build on their already impressive success. We’ve created a strong, externally monitored firewall, to protect resellers’ confidential information, as required by the FTC, and also as a sign of trust, because we know it’s the best thing for the Essendant business, and the resellers.”
The FTC’s conditional approval of the merger marked what some say could be a landmark case by the agency’s new team of commissioners regarding the treatment of merged companies. The commission voted to approve the Staples-Essendant deal by a 3-2 vote along party lines.
In a statement about the decision, FTC Chairman Joseph Simons, speaking for the Republican majority, says the primary concern the agency considered was the potential for Staples to raise Essendant’s prices to Essendant’s client distributors and resellers, some of whom sell office products to businesses that Staples also sells to directly. Theoretically, Staples could then gain a competitive advantage by undercutting the prices of Essendant’s channel partners.
I would say this is all the more reason to sell your own brand vs someone else, what do you think?
Learn more on how Bullen can help, click here
Have a great day and an even better sales week!