Office Depot Acquires Allied Office Products

May 17, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on May 2006 Office supply, services and furniture retailer Office Depot has acquired Allied Office Products, the country’s largest independent dealer of office products and services, for an undisclosed amount.

Allied, with annual revenues of more than $300 million, currently operates sales offices from New York to California, with a strong concentration in the Northeast. Allied’s offerings include office supplies, break room and coffee services, janitorial supplies, computer products, custom printing, managed print services, promotional items, office furniture and design.

“This acquisition accelerates Office Depot’s growth, enhances our competitive position and extends our industry leading line of products and services,” said Steve Odland, chairman and chief executive officer of Delray Beach, Fla.-based Office Depot, in a statement issued Wednesday. “In particular, Allied’s strength in the Northeast will continue to broaden Office Depot’s presence in this important region, while their ability to meet the diverse needs of legal and medical customers will further our expansion in key vertical markets.”

Allied and Office Depot share the same business philosophy, said Howard Brown, chairman and chief executive officer of Allied Office Products.

“Office Depot has the breadth and depth of both national and private brands, as well as the promotional programs, purchasing power and financial clout necessary to empower our sales people to better meet customer requirements on a global basis,” he said.

Brown, his son Michael—who currently serves as president of Allied Office Products—and other key executives will continue as part of the management team within Office Depot’s North American Business Solutions Division.

“Allied’s management experience, national customer base and knowledgeable sales force are perfect complements to our existing contract organization and infrastructure,” said Cindy Campbell, executive vice president of Office Depot’s BSD division.

Office Depot has annual sales of more than $14 billion—including more than $3.8 billion via e-commerce—serves customers in 23 countries and employs about 47,000 people worldwide. As of April 1, the company had 1,049 retail stores in North America. Internationally, Office Depot has wholly- or majority-owned operations in 16 countries, and it operates retail stores under joint venture and license arrangements in another five countries.