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Essendant, Inc. (NASDAQ: ESND) acknowledged on September 5 receipt of a letter from Staples, Inc., including Staples' reiteration of its proposal to acquire Essendant for $11.50 per share in cash. Essendant said its Board of Directors is reviewing the letter and other materials filed earlier by Staples with the Securities and Exchange Commission, but added that its proposed merger with S.P. Richards remains on track.
In April, Essendant and Genuine Parts Company (NYSE: GPC) entered into a merger agreement that will combine Essendant with GPC's S.P. Richards business. Staples made an unsolicited offer to acquire the company in May. Essendant said its merger agreement with GPC remains in effect, and that its Board has not changed its recommendation that Essendant's shareholders vote in favor of that transaction.
The company has scheduled a special stockholder meeting on October 5, 2018, to approve the issuance of Essendant shares for the S.P. Richards transaction. The company said it expects the transaction to close before the end of 2018.