Office Depot Aquires New Mexico Dealer Sandia Office Supply.

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Office Depot Aquires New Mexico Dealer Sandia Office Supply.

 news 2018-03-29 at 12:51:11 pm Views: 397
  • #49980

    Office Depot Aquires New Mexico Dealer Sandia Office Supply.
    Office Depot Inc has snapped up another large independent office supplies dealer in the US.

    By Andy Braithwaite.

    Image result for Sandia Office Supply.

    Following on from last October’s acquisition of $150 million dealer Complete Office Solutions, Office Depot recently closed on a deal for leading New Mexico dealer Sandia Office Supply.

    Headquartered in Albuquerque, Sandia is thought to have annual sales of around $50 million. It also has locations in Oklahoma after acquiring Tulsa-based dealer Admiral a couple of years ago.

    It is understood that Depot will maintain the Sandia brand and operate it as a separate entity within its Business Solutions Division. That’s the same strategy it adopted for Complete and means that Office Depot essentially acts as a wholesaler for the local dealer. How long term this strategy is remains to be seen.

    Sandia was a first-call SP Richards dealer and also a member of the Pinnacle group for large dealers.

    Its acquisition by Office Depot highlights one of the challenges currently facing the independent dealer channel (IDC) in the US. Continued dealer consolidation, especially when volumes move out of the IDC, is having a negative impact on various channel stakeholders such as manufacturers, dealer groups, wholesalers and software providers.

    Sources in the US have told OPI that there are several more dealers out there with non-disclosure agreements in place and that further acquisitions are expected in the coming weeks and months. 
    Read more about market consolidation in the OP industry in the April 2018 issue of OPI.
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