Office Depot and OfficeMax get FTC request, started to search for CEO
The companies received a Request for Additional Information and Documentary Materials from the Federal Trade Commission (FTC) in connection with the proposed merger. A Second Request extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, during which the parties may not close the transaction until 30 days after OfficeMax and Office Depot have substantially complied with the Second Request (or the waiting period is otherwise terminated by the FTC). Office Depot and OfficeMax expect to respond promptly to the Second Request.
Office Depot Board Member Nigel Travis, CEO of Dunkin' Brands Group and President of Dunkin' Donuts, and OfficeMax Board Member Jim Marino, former President and CEO of Alberto Culver Company, will co-chair the selection committee. The other members are Office Depot directors Tom Colligan and Marty Evans; Rakesh Gangwal, Non-executive Chairman of the Board of OfficeMax; and OfficeMax director Francesca Ruiz de Luzuriaga.
The committee will oversee a comprehensive search process that will consider both incumbent CEOs - Neil Austrian, Chairman and CEO of Office Depot and Ravi Saligram, President and CEO of OfficeMax - as well as external candidates. The committee will proceed with the objective of selecting the CEO for the combined company at or prior to the closing of the transaction.
"Today's announcements mark a key milestone in our vision to help shareholders and customers of both companies realize the tremendous value inherent in our proposed combination. By bringing together several of our top executives and Board members to focus on the process of integrating our two great companies, we will build on our culture of collaboration as we move closer to successfully closing the transaction and better competing in this large and rapidly changing industry," said Mr. Austrian.
"The formation of the CEO selection committee and launch of our integration planning process represent important steps forward in achieving our vision of an $18 billion global office solutions company. We are very pleased to have launched a comprehensive integration planning process and remain confident in the combined company's ability to deliver the targeted cost synergies and to more rapidly scale key market innovations," said Mr. Saligram. ■