Struggling retailer Office Depot has received a $350 million investment from private equity firm BC Partners.
By Rebecca Waters
The investment gives the private equity firm an initial ownership interest of about 20 percent in the company.
Under the investment deal, Office Depot is issuing BC Partners $350 million of newly issued preferred stock that carries a 10 percent dividend.
Like other retailers, Office Depot has posted sharp sales and profit declines in recent quarters. The company has also halved its plans for new-store openings in 2009 and closed several underperforming stores and distribution centers.
The deal is the first U.S. transaction announced by BC Partners since the large UK buyout firm set up an investment operation in New York in March 2008.