AURELIUS Equity Opportunities : subsidiary Office Depot Europe sells its UK and Ireland contract business to strategic buyer OT Group

AURELIUS subsidiary Office Depot Europe sells its UK and Ireland contract business to strategic buyer OT Group

• The acquired customers in the UK and Ireland will be integrated into OT Group
• Fifth sale of an Office Depot Europe business in the past 20 months
• Sale will focus Office Depot Europe on its core European markets and e-commerce-centric activities
• Completion of the sale is expected in the near future

Munich/Venlo, June 22, 2021 - Office Depot Europe, a portfolio company of AURELIUS Equity Opportunities SE & Co. KGaA (ISIN: DE000A0JK2A8) has agreed to sell its larger mid-market, major and public sector contract customers in the UK and Ireland to strategic buyer OT Group. OT Group headquartered in Smethwick, UK, is a leading provider of business services and workplace solutions across the UK and Ireland and part of Paragon Group. Completion of the sale is expected in the near future.

As part of the transaction, OT Group will take on Office Depot Europe's distribution centre in Ashton-under-Lyne, Manchester and the headquarters of Vital Communications, Office Depot's print, marketing & communications business in Dartford, Kent. The deal extends OT Group's capacity to serve its customers through the addition of Office Depots Europe´s state-of-the-art warehousing facilities and new key verticals. OT Group will also enter into a collaboration agreement with Office Depot Europe, servicing the international customers that will be transferred as part of the deal.

This sale is the fifth non-core Office Depot Europe business sold within the past 20 months. Office Depot Europe sold its Central Eastern European ('CEE') business in November 2019, its Nordic division in May 2020, its Spanish contract business and direct business units in the summer of 2020 and its Italian business in February 2021.

The transaction is part of Office Depot Europe's ongoing transformation, following Office Depot Europe's overall strategy of focusing on its e-commerce-centric trading brand Viking in its core European countries of DACH, Benelux, UK and Ireland, where it benefits from a strong and leading position. Focusing on the development of its online focused business and on its transformation programme will ensure Office Depot Europe's long-term position as a leading supplier of workplace solutions in the market.

'We look forward to welcoming our new customers and colleagues to the OT Group, once the tupe process has concluded. Office Depot Europe will add a wealth of experience and knowledge to our extended range of workplace solutions and business services. This acquisition aligns with our ambitious growth strategy, as well as our plans to expand operations throughout Europe. The needs of our customers is our key priority. We would like to reassure all current OT Group and new Office Depot Europe customers that we are planning a seamless transition during the integration period', said Andrew Jones, CEO of OT Group.

Raffael Reinhold, CEO of Office Depot Europe: 'We are pleased to have entered into this agreement with OT Group. This transaction will further accelerate our strategic transformation whilst ensuring continuity of service for our UK and Ireland contract customers focused on bespoke solutions, and a bright future with OT Group for our colleagues.'