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Analysis: RAJA ramps up OP
in Italy (with Bruneau) and Spain (Bruneau and Lyreco) and for the UK contract business (OT Group) – it is unlikely these units were of great interest to RAJA. OPI had the opportunity to speak with RAJA CEO Danièle Kapel-Marcovici shortly after the acquisition announcement. She was reluctant to give too much away ahead of the deal closing, and will most likely provide an in-depth strategy update at a press conference in Paris in October. However, she referred to comments she had made in a press release, in which she spoke about driving profitable growth at Viking and achieving synergies in areas such as purchasing, marketing and sales.
RAJA’s B2B direct office products business has taken a giant leap forward after it made a move for Office Depot Europe and its Viking brand
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RAJA Group has cemented its position as a major player in the European office supplies market after agreeing to acquire the remaining businesses of Office Depot Europe (ODE) from private equity firm Aurelius. The transaction – for which financial details have not been revealed – is expected to close at the end of October. Competition approvals have already been given, OPI understands, and there are just a few remaining formalities to finalise. RAJA will then own the Viking brand in seven European markets – the UK, Ireland, DACH (Germany, Austria, Switzerland), the Netherlands and Belgium – plus the remaining ODE contract customers in DACH. Altogether, the deal will add almost €500 million ($590 million) to RAJA’s top line, most of that derived from Viking. Almost 1,500 employees are set to make the switch, while RAJA will also take on two distribution centres, one in Großostheim (Germany), the other in Leicester (UK).
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A GOOD FIT The move comes about two years after the France-based packaging specialist bought Staples Solutions’ operations in France, Italy and Spain, which led to the creation of RAJA Office. With the addition of ODE, RAJA Office will have annual sales of around €800 million and a presence in ten countries. Group-wise, RAJA will service more than 2.2 million clients in Europe, with revenues jumping to over €1.6 billion a year. In geographical and business model terms, the acquisition dovetails nicely with the acquired Staples Solutions assets, which currently trade under their former, pre-Staples, brand names: Bernard and JPG in France, Mondoffice in Italy and Kalamazoo in Spain. Therefore, it is now clearer why Aurelius entered into separate agreements for ODE
DEVELOPING POTENTIAL “We have already identified several areas of potential at Viking, and I’m sure we will discover others,” Kapel-Marcovici said. “There is a need to invest in this business, and we will do exactly that.” She hinted at several things which appear to have been taken from the playbook RAJA adopted following the Staples Solutions acquisition: greater autonomy for local management, improving the quality of sales media (internet and catalogues) and expanding product ranges. The latter is not about Viking selling more packaging products, but evolving its offering to better cater to new ways of working: categories such as furniture, workplace collaboration and well-being. A greater emphasis on sustainable products is also something the RAJA CEO is keen on developing.
There is a need to invest in this business, and we will do exactly that The acquisition will no doubt be good news for RAJA Office’s supplier partners. The group has a history of sourcing locally wherever possible and the vast majority of items in the new RAJA-branded office products range come from vendors that manufacture in Europe. There is no reason to believe it will shift from that philosophy with Viking on board. Indeed, it will likely be looking to leverage those supplier relationships following the significant increase in purchasing power. RAJA has breathed new life into the Staples Solutions brands since the end of 2019, despite the challenges of the COVID pandemic. It has also given them a fresh sense of identity, framed within the values and culture of the RAJA family. It will be looking to achieve exactly the same with Viking over the coming months. Some difficult decisions will have to be taken – that’s a given with any acquisition of this nature and size. But we can hopefully look forward to a reinvigoration of the iconic Viking brand in Europe, which for many years led the way in terms of innovation and customer service.
