2017.06.2822:55:00UTC+00Sycamore to Acquire Staples for Around $6.9 Billion

Sycamore Partners will buy Staples Inc. for around $6.9 billion, a daring bet on a firm whose sales has been sliding in the past years. Sycamore is anticipated to pay $10.25 per share for the office-supply retailer.

The price denotes an almost 20 percent premium from the shares' trading level before The Wall Street Journal reported that Staples was considering a sale in early April.

Shares of Staples climbed 8.4 percent to end at $9.93 after the Journal posted an announcement was expected. The shares further rallied in extended trading.

Sycamore won over other private companies in the bid for Staples, which also has a solid business providing supplies for corporate and government customers. Around two-thirds of the firm's earnings comes from its stable stream of corporate and government clients. But the firm shuttered stores and sold off its business in some markets as it looks to improve performance in its home market.

If completed, the deal would be the largest leveraged buyout this year, Dealogic said.