November 7, 2010 / 9:23 AM / 9 years ago

Office Depot to sell Israel unit to Hamashbir

JERUSALEM, Nov 7 (Reuters) - Israeli retailer Hamashibr Lazarchan said on Sunday it signed a deal to buy the Israeli unit of Office Depot Inc ODP.N at a company value of 178.6 million shekels ($50 million) minus outstanding debt at the time of closing.

Under the deal, Hamashbir — which operates a chain of department stores — will pay Office Depot royalties each quarter of 1.35 percent of sales, it said in a statement.

It will pay a minimum of 13.5 million shekels a year starting in 2015 based on estimates that Office Depot’s sales in Israel will reach about 1 billion shekels.

Office Depot Israel had sales of 602 million shekels in 2009 at its 46 stores.

($1 = 3.59 shekels)

Reporting by Steven Scheer; Editing by Erica Billingham

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