BOCA RATON, Fla. (AP) -- Office Depot has picked Boca Raton, Fla., for its global headquarters, choosing that location over the Illinois home of its merger partner OfficeMax.
Last month Office Depot Inc. and OfficeMax completed their $1.2 billion merger and took the name Office Depot. OfficeMax was based in Naperville, Ill., while Office Depot's headquarters are in Boca Raton.
In mid-November, Office Depot named Roland Smith as its new CEO and said he would help to decide where the combined company would be based.
Smith said in a statement on Tuesday that after assessing its options the company determined that Boca Raton provided a way for it to drive better profitability and reach planned savings.
Office Depot looked at a number of factors before making its decision, including the cost to run each headquarters location, lease obligations and sublease considerations, government incentives and tax implications.
Office Depot will stay in its existing corporate campus in Boca Raton. The company said that there is ample space for employees that are moving from Illinois. While the transition and integration process occurs, Office Depot will keep a presence in Naperville. The company said that it is too early to estimate how many employees will relocate.
The company has about 1,600 workers in Illinois and 1,700 in Boca Raton.
The location of Office Depot and OfficeMax stores, customer service centers, warehouses and distribution centers are not affected by the selection of the headquarters location.
Shares of Office Depot gained 2 cents to $5.39 in midday trading.
- Office Depot
- Boca Raton