Headline: Depot seals deal to buy 124 Kids “R” Us stores
3 March 2004 – Delray Beach (FL): Office Depot Has agreed to acquire 124 former Kids “R” Us stores from Toys “R” Us.
Depot will pay Toys “R” Us $197 million in cash and assume the lease of payments and other obligations. The 124 stores include properties owned by Toys “R” Us as well as stores with ground or operating leases.
Depot’s CEO Bruce Nelson said: “This highly strategic transaction represents one of many solid steps in our strategy to reposition our North American retail portfolio for growth.
“The 50-60 Kids “R” Us sites that we plan to convert to Office Depot stores will expand our presence in existing core markets and will immediately give us access to large markets where we do not have a strong retail concentration.”
The transaction is expected to close in phases over the next several months.