Office Depot And OfficeMax Issue Update On CEO Search - Quick Facts

(RTTNews) - Office Depot Inc. (ODP) and OfficeMax Inc. (OMX) provided an update on the Chief Executive Officer search process for the combined company as part of the overall progress on integration planning.

To date, more than 100 candidates have been reviewed and vetted, and eight of the top candidates have already been interviewed. The CEO Selection Committee has narrowed the selection process to five exceptional candidates it believes can lead the combined business forward following the merger, with the goal of having a permanent CEO in place by September, the companies said.

The two companies had hired executive search firm Korn/Ferry International to assist the CEO Selection Committee in its comprehensive search. The Committee is co-chaired by OfficeMax Board Member Jim Marino, the former President and CEO of Alberto Culver Company, and Office Depot Board Member Nigel Travis, the Chairman and CEO of Dunkin' Brands Inc.

The companies said that they are very concerned that the disruptive proxy campaign currently being led by Starboard Value, LP, an investor in Office Depot's stock, to replace four Office Depot Board members, including two that currently sit on the CEO Selection Committee, if successful, will prove counterproductive to the CEO selection process.

The Office Depot Board Member Nigel Travis noted that, based on discussions with Office Depot shareholders, the company believes the shareholders do not want to disrupt the CEO search process or in any way impact the value that is attainable from the OfficeMax merger, which this Board is intensely focused on delivering.

OfficeMax noted that each member of the Committee has been actively engaged in evaluating the slate of candidates, including several that were suggested by Starboard Value, LP.

In February, office products retailer Office Depot agreed to buy peer OfficeMax in an all-stock deal valued at about $1.2 billion. On July 10, 2013, stockholders of both companies approved the merger. The transaction is expected to close by the end of calendar year 2013, subject to regulatory approvals and the satisfaction of other customary closing conditions.