BOCA RATON, Fla. — Office Depot Inc. said recently that private equity firm BC Partners has bought a significant stake in the ailing office supplies retailer with a $350 million investment through preferred stock purchase.
The deal to buy the shares gives London-based BC Partners about a 20 percent ownership in the company. Three representatives from BC Partners will now join Office Depot's board.
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BC Partners bought about $275 million of the Boca Raton-based company's series A redeemable convertible perpetual preferred stock and about $75 million of its series B redeemable convertible perpetual preferred stock, the company said in a statement.
On its Web site, BC Partners says that it "has played an active role in the development of the large buy-out market for 20 years," and that it has participated in 68 acquisitions over the course of the company's lifetime.
Office Depot's shares (NYSE: ODP) were up more than 4 percent in early trading following the announcement of the cash infusion.
Allison Ross writes for The Palm Beach Post. E-mail: allison(underscore)ross(at)pbpost.com.
