Posts tagged: Merger

xpedx + Unisource – Will Bigger Be Better?

Jeff Hayes
 Jan 31, 2014

International Paper (IP) and Unisource Worldwide (UWW) Holdings have announced a definitive agreement to merge their distribution businesses and form a newly created, publicly traded company that will be the largest paper distributor in North America.

This is a big deal. Two of the largest distributors of paper, board, and related supplies for the commercial printing and packaging industries are merging. It would be like Sysco and US Foods, UPS and Fedex, or Dunkin’ Donuts and Starbucks merging — OK, maybe not that big, but you get the idea.

The new xpedx/Unisource (unipedx? I hope not.) will have an unparalleled combination of product assortment, availability, logistics services, operational efficiencies, and, potentially, pricing power in the market. According to IP, the combined xpedx and Unisource business will have projected annual revenue in the range of $9 billion to $10 billion, and will have about 9,500 employees across more than 170 distribution centers in North America.

xpedx (blue) and Unisource (red) North American Locations

InfoTrends graphic from xpedx and Unisource data

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Office Depot and OfficeMax Announce Merger of Equals

Other Posts
 Feb 21, 2013
Rumored for some time, Office Depot and OfficeMax announced that the companies would be merging with the goal of creating a stronger and more efficient combined company. While retail has been the office superstores primary and original mode of business, the three top chains, Office Depot, OfficeMax, and Staples, are all finding that their business has been evolving away from retail towards the Internet and business to business (B2B). As a result, the chains have been altering their strategy towards smaller stores and making greater investments in e-commerce initiatives. We believe that for electronics and high value supplies like ink and toner, Internet is creating great stress on retail. The truth of the matter is that with the proliferation of tablets and smart phones, people are spending more time with their devices and less time visiting a store. Also, adding to the competitive pressure for the superstores, Walmart and other mass merchandiser types are a one-stop-shop and now carry wide range of office supplies.
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