Any Colorado Springs business changes as a result of the Office Depot and OfficeMax merger will not be imminent, according to a spokeswoman for the now-giant office products store.
Announcements of any changes are also premature, the company said.
Office Depot and OfficeMax merged Nov. 5. The company now uses the name Office Depot Inc. and trades on the New York Stock Exchange as ODP.
In Colorado Springs, Office Depot has four locations, 823 N. Academy Blvd., 535 S. Eighth St., 3640 Austin Bluffs Parkway, and 1922 Southgate Road. OfficeMax has three locations, 3826 Bloomington St. off Powers Boulevard, 1640 E. Cheyenne Mountain Blvd. and 7645 N. Academy Blvd.
“No decisions concerning stores have been made at this point,” said Brian Levine, vice president of corporate communications for Office Depot.
Another office supply megastore, Staples, serves locally and nationally as a main rival of the new Office Depot Inc.
Store Manager Sam Ordonez of Staples on New Center Point referred questions to the corporate office, adding that nothing will change with Staples’ customer service.
“We’re going to strive to continue getting people taken care of on a personal and business level,” said Ordonez.
Staples’ corporate office did not return Business Journal phone calls.
The new Office Depot Inc. would have had a combined revenue for the 12 months prior to Sept. 28 of approximately $17 billion, the news release said.
The company now employs 66,000 people worldwide and is located in 59 countries, with more than 2,200 stores in a network of wholly owned operations, joint ventures, franchisees, licensees and alliance partners. The company’s portfolio of leading brands includes Office Depot, OfficeMax, OfficeMax Grand & Toy, Viking, Ativa, TUL, Foray, and DiVOGA.
Each company will maintain its respective loyalty programs and expects to announce a combined loyalty program sometime in 2014.
“Total estimated annual cost synergies by the end of the third year following the close of the merger are now expected to be in the upper half of the previously estimated $400-$600 million range. This excludes any potential synergies from approximately $2 billion of other operating expenses related to retail stores that have not yet been evaluated, as well as any potential working capital savings that may result from vendor or supply chain facility consolidation,” according to the release.
The company expects to incur one-time costs of $200 million related to the merger and an additional $400 million in integration costs.