Office Suppliers Steal the Spotlight With M&A Buzz
Office supply retailers stole investor attention on Tuesday morning. Shares of OfficeMax (NYSE:OMX) and Office Depot (NYSE:ODP) soared after The Wall Street Journal reported that the two companies were engaged in merger talks. Both companies were up about 28 percent in morning trading.
The prospect of consolidation in the office supply industry is not necessarily a new idea. Analysts have indicated that a merger would help against mounting competition from the likes of Amazon (NASDAQ:AMZN), which has stolen sales from budget-conscious consumers.
The financial crisis was also particularly unkind to OfficeMax, which recorded losses of $21.90 per share in 2008. The stock price collapsed from over $50 to below $10 in less than a year. Here’s a quick look at how the company has performed over the past few years.
|Revenue ($) in millions||9,082||8,267||7,212||7,150||7,121|
|Diluted EPS ($)||2.66||(21.90)||(0.03)||0.79||0.38|