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Staples' European unit consists of retail, contract and online
businesses in 16 countries, generating aggregate annual sales of
about 1.7 billion euros ($1.82 billion).
The company said it would retain a 15 percent stake in the
European business.
The deal comes two months after smaller rival Office Depot Inc <ODP.O>
said it would sell its European operations to investment company
Aurelius Group.
Staples and Office Depot called off their planned merger in May
due to antitrust concerns.
Following the scrapping of the deal, Staples named a new chief
executive and announced a $300 million cost-cutting plan and
exploration of strategic alternatives for the European business.
Staples' sale of the European unit is expected to be completed
during the first quarter of its fiscal year beginning February
2017, subject to certain conditions. Financial terms of the deal
were not disclosed.
Cerberus plans to bolster the European business by expanding its
sales force and diversifying beyond office supplies, said Steven
Mayer, the private equity fund's senior managing director.
Staples said last month it would sell its UK retail business and
operations to Hilco Capital, which invests in distressed
companies.
(Reporting by Arunima Banerjee and Sruthi Ramakrishnan in
Bengaluru; Editing by Anil D'Silva)
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