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Page d09 became one of the largest listed companies in the Washington area in just three years, by integrating small companies around the world, the United StatesS.
Office Products Company
The company announced yesterday that it was reversing the situation, dividing it into five listed companies, buying back 28% of its shares and selling shares in a streamlined office product business to an investment company.
Executives say they hope the deal will add value to America. S.
Due to the complex structure of the company, the inventory of office products that have been in a downturn has remained unchanged for a long time.
In addition, Jonathan J. , founder and chairman ·
Ledeky has been complaining about his Washington for months.
S. -based companies have been punished for problems with some competitors.
\"I\'m tired of our [company]
\"Hundreds of analysts, investors and employees are listening compared to bankrupt companies,\" ledeky said in a conference call yesterday . \".
\"Well, there are two things you can do: you can complain or you can take action.
\"In order to increase the value of shareholders, ledeky is turning this around
He established the integration strategy on which the company was based.
On the third birthday, the United StatesS.
The annual sales of office products exceeded $4 billion, providing office products or services to corporate customers by acquiring small companies in various sometimes loosely related industries.
The Company believes that putting all of these businesses under one roof will improve efficiency and allow for \"crossover\"
Sell \"among them. U. S.
Office Products will divide the company\'s travel services, educational supplies, printing management and technical solutions into different business units. -
No base in the Washington area-
Will focus on the 7 billion Washington company that sells office products, furniture and coffee supplies to corporate customers.
\"The lesson I learned was that Wall Street wanted a simple story,\" ledeky said in an interview . \".
Analysts generally welcomed the new corporate structure. -
Shareholder approval is required.
Shares of the company rose 16%-$2. 81 1/4 per share-
It closed at $20 yesterday.
The Nasdaq stock market rose 1/4, analysts said, reflecting investors\' belief that they can now have a clearer picture of the company\'s strategy and performance.
\"The reality is that the more difficult it is for a business to understand, the more discounted people will be,\" said Jim Stover, an analyst at Salomon states in New York.
Ledeky, he\'s always been the driving force behind America. S.
Office Products will not hold executive or board seats in any restructured company, so he can focus on other commercial enterprises, especially integrated capital companies, he said.
Ledeky announced Washington last week-
Listed companies based last month will focus on facilities management-
Buy companies that provide pest control, landscaping, equipment maintenance and other services to institutional building owners.
However, ledeky said he would hold a large stock in the United States. S.
Office Products and four spinning
As a consultant, close engagement will continue.
\"I don\'t want to be an employee of more than one company,\" he said . \".
\"I owe shareholders of consolidated capital. . .
Focus and explore this opportunity in depth. \"The U. S.
Clayton, Dubilier & Rice Inc. will provide $0. 27 billion in support for Office product spin-off and stock repurchase
Will get a 24.
Slim version of 9% equitydown U. S.
CDR is a private investment company that, over the past 20 years, has earned an average annual profit of about 30% by investing in 26 companies.
It usually holds shares of the company for two to seven years and then cashes by arranging the sale of the business. Backed by a $1.
Raised 5 billion of the money from private investors, \"We bring very strong financial resources,\" which will make the U. S.
Charles Pieper, head of the company, said the acquisition of office products will continue.
Although he believes that integration is the right strategy for the United StatesS.
Pieper acknowledged that the market \"did not evaluate these products after they were assembled.
\"Some analysts said that although some efficiency can be achieved by integrating various offices --
Related businesses under one roof, some in the United StatesS.
The acquisition of office products may be too far away.
\"I really think some of these businesses might make more sense in terms of position --
Danielle Fox, an analyst at J. , said: \"This is the only basis, and it may always be . \"P.
Morgan Securities in New York
She predicts that the streamlined company will be \"beneficial to shareholders \".
\"We never said there was a huge synergy between school supplies and office furniture,\" she said . \".
\"I think what they\'re doing is responding to what the market is telling them. \"U. S.
Office product shareholders now have two options: they can bid on their shares for $27 a share ---
Higher than the stock price of the past year--
Or they can hold their shares and get shares in each of the five restructuring companies.
If more than 28% of shareholders bid for $27, those who agree to bid will receive some cash and shares based on the market segment.
Analysts said shareholders holding the stock could benefit the most because the four stocks
Healthy business and high profit margin.
Because if their profitability remains the same, the five companies will all grow through acquisitions, so the stock may be higher.
\"My numbers are getting better and better as I dig deeper,\" said Brad Cohen, an analyst at Sands brothers. in New York.
\"We see the intrinsic value of this company. . .
Over $40 per share.
Staff writer Jerry Knight contributed to the report.
Although its share price began to fluctuate in the medium term, it was acquired without fear. 1996, U. S.
Office products continue to acquire companies and expand revenue. U. S.
Office product sweekly shares closesGoes Open: from February 1995 to April 1995: eight companies were bought for $63. 7 million;
Total revenue: $177 million by January 1996: 23 other companies were acquired for $0. 154 billion;
Total revenue: $352 million by October 1996: 82 companies were acquired for $0. 832 billion;
Total income: $1.
In October 1997, 93 companies were acquired for $0. 804 billion;
Total income: $1.
2 in the morning yesterday: the United StatesS.
Office Products has announced that it will split into five listed companies.
Stocks closed at $20. 561/4, up $2.
811/4 Source: Bloomberg NewsS.
US Office Products