Office Depot is selling its Australia and New Zealand business to Platinum Equity, advancing its strategy to divest its international operations.
Subject to regulatory approval in each country, the transaction is expected to close within the next several months. A purchase price was not disclosed.
“The proceeds from this transaction will further enhance our financial flexibility as we focus on our strategic initiatives to grow our North American business," said Gerry Smith, chief executive officer for Office Depot, in a media release.
Channel rival Staples entered into a similar agreement with Los Angeles-based Platinum Equity last month. However, Office Depot’s deal with the investment firm is part of a larger divestiture strategy announced last fall to sell all of its international businesses.
Most recently, Office Depot completed the sale of its European business to Washington, D.C.-based The Aurelius Group in December 2016. The retailer plans to sell its remaining international businesses in South Korea and China by the end of 2017. The Australia, New Zealand, South Korea and China businesses generate approximately $600 million in total annual sales and an operating loss, according to the retailer.
A few days after this article was published, Office Depot closed on the sale of its South Korea business to Hong Kong investment firm Excelsior Capital Asia. The terms of the sale were not disclosed.