Office Depot, OfficeMax Complete Merger

Office Depot and OfficeMax have officially consummated their merger and named former Delhaize America chief Roland Smith as the combined company's chief executive officer.The union aims at cutting costs, consolidating stores, boosting clout with suppliers and creating a solid front against market leader Staples and both online and discount-store rivals. Yet with both retailers recently reporting another quarter of poor results, the combined company — named Office Depot Inc. — faces an uphill battle.Former Office Depot ceo Neil Austrian and former OfficeMax ceo Ravi Saligram served as co-ceos for a week until Smith was appointed. Both had bowed out of the running for the permanent role and have already resigned.Although he spent less than one year at Delhaize America, Smith is credited with integrating the operations of its supermarket chains and then improving the company's balance sheet by selling off three of them. (See "Delhaize ..." in Related Articles.) Before that, he helped combine restaurant chains Wendy’s and Arby’s, and led turnarounds at American Golf Corp. and AMF Bowling Centers. He also has held senior management positions at KFC International, Pepsi Cola International, Schering-Plough and Procter & Gamble.The company will keep dual headquarters, in Boca Raton, FL, and Naperville, IL, until the final details are ironed out. For now, stores will continue to operate under their respective banners. Store credit cards will be accepted at either chain beginning mid-December, while the Office Depot Rewards, MaxPerks Rewards and MaxPerks Teacher Rewards programs will remain distinct until a combined loyalty program is unveiled in 2014."I know that numerous cross-company teams have worked dilligently over the past eight months to create a clear blueprint for the integration of Office Depot and OfficeMax," Smith said in a media release. "Moving forward, my focus will be on fully integrating the two companies, achieving the planned synergies, creating a compelling vision for the future, and leveraging our infrastructure and assets to drive improved profitability and increased revenue. Additionally, I fullyunderstand that we need to make a headquarters decision quickly so that we can drive our integration efforts."The companies first unveiled their plans in February (see “Office Depot Announces …”), received Federal Trade Commission clearance for the merger on Nov. 1, and officially closed the deal on Nov. 5.OfficeMax immediately sent out an email announcing, “We are combining the best of both companies … watch as our stores and websites evolve to serve you with even more innovative new choices, greater access, exceptional customer experiences and continued excellent values.” The email linked to a dedicated website (officedepotmaxmerger.com) providing additional information.

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