Staples shareholders approve Staples.com foldback into Staples Inc.
Staples, Inc. and Staples.com shareholders have voted to reclassify Staples.com stock into Staples common stock. The vote allows Framingham, MA-based Staples to combine the two operations. “The integration of Staples.com with our catalog and retail stores is the smartest and most efficient way to run our business,” says Staples Chairman and CEO Thomas Stenberg.
Under the agreement, each share of Staples.com stock will convert into 0.4396 share of Staples common stock.
Staples` board of directors in March had voted to exchange Staples.com stock for Staples stock. The combination was delayed after shareholders sued for the right to vote on the matter, which they approved 85% to 15% in this week’s vote. Staples says the combination will increase operating efficiencies. Staples has found its shoppers are increasingly purchasing across its web, catalog and stores – a trend it wants to encourage, as customers who shop all three channels spend an average 4.5 times as much per year as those who shop only the stores, according to the company.
E-commerce revenues for Staples, Inc., including Staples.com, StaplesLink.com, BusinessDepot.com and Quill.com, reached a record $234 million for the second quarter, an increase of 144% over $162.5 million for the second quarter of last year. Staples.com achieved profitability in the quarter, posting net income of $5 million.
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