Office Depot selling Japan unit

NEW YORK (BestGrowthStock) – No. 2 U.S. office supplies retailer Office Depot Inc (ODP.N: ) said Thursday it has agreed to sell its Japanese arm to Tokyo-based retailer Kakuyasu.

Financial terms of the deal were not disclosed.

Under the deal, Kakuyasu can license Office Depot’s trade names and use its sourcing services and will support Office Depot`s customers in Japan.

Kakuyasu had sales of $775 million in 2009.

Charlie Brown, president of Office Depot’s international unit, said he expects the retailer to gain from Kakuyasu’s distribution network and local expertise.

The news comes a month after Office Depot struck a deal to sell its Israeli unit to Israeli retailer Hamashibr Lazarchan.

In October, Office Depot reported a drop in quarterly sales, hurt by weakness in both domestic and international markets. It also announced the departure of its embattled chief executive officer, who settled improper disclosure charges with U.S. regulators. (ID:ID:nN25221945: )

Analysts have looked at CEO Steve Odland’s departure as a good step for the company, which has consistently lost market share to industry leader Staples Inc (SPLS.O: ) and smaller rival OfficeMax Inc (OMX.N: ).

(Reporting by Dhanya Skariachan, editing by Gerald E. McCormick)

Office Depot selling Japan unit