Not a word on the Mexico sale
The Mexico unit is one of the most profitable areas that Office Depot has. Imagine if they had that kind of arrangement else where. Its really the only thing keeping OD a float. Once its sold then things need to change fast. They can easily go thru the sale price in a matter of a couple of years. Just to get out of the BC partner deal they will need to pay 175 Million (50% pay out at time of merger) plus current dividend and pay big million dollar bonuses to top exec. So just to pay for thin air which is BC Partners, executive pay bonuses, and the loss of income from the Mexico unit, they could easily spend over 50% of the sale value. Extremely top heavy company right now. Plus in the merger Office Max is given an increase in equity which need to come from the Mexico sales which just about uses of up the rest of the sale value. A massive realignment under new
people needs to take place that has input not from a few people behind closed doors but the combine input from people on the ground too.