Essendant Must Face Jilted Suitor’s Challenge to Staples Merger

Essendant Inc. must face a lawsuit challenging its acquisition by Sycamore Partners, a private equity firm that merged the office supplies wholesaler with Staples Inc., a Delaware judge ruled Sept. 9.

Sycamore acquired Essendant last year in a $12.80-per-share deal worth about $1 billion. To make the deal, Sycamore elbowed aside Genuine Parts Co., the global automotive and auto supplies conglomerate. Because Essendant and GPC already had a tentative deal, Essendant had to pay it a $12 million termination fee, according to the Chancery Court opinion.

GPC sued, claiming $12 million wasn’t enough to make it whole. Essendant moved ...