U.S. Office Products Plans to Restructure

U.S. Office Products said it plans a restructuring that involves a share buyback, the spin-off of four units and the sale of 24.9% of the revamped company to a private investment firm. The supplier of office products and business services said it would spend $1 billion to repurchase about 37 million, or about 28%, of outstanding shares at $27 per share, incurring about $800 million in debt. The tender will be financed through New York-based Clayton, Dubilier & Rice’s $270-million investment, bank loans and high-yield debt. The spin-off would create four new independent companies--Corporate Travel Services, Education, Print Management and Technology Solutions Division. The company would distribute the shares to U.S. Office Product shareholders in what is expected to be a tax-free transaction. Washington-based USOP’s stock rose $2.81 to close at $20.56 on Nasdaq.