April 11, 2003/ FWD/ -- IIn its continuing bid to relieve itself of its business-to-business assets and focus primarily on its retail and luxury units, PPR is close to accepting an 815 million euro ($872 million) bid from Office Depot for Guilbert, its office supply business.

PPR first outlined its new business strategy in September, when chairman Serge Weinberg said the group was looking to shed all of its business-to-business activities by 2004. Last year, PPR unloaded Guilbert's mail order subsidiary to Staples, a main Office Depot rival, for an 825 million euro payout.

"Ahead of schedule and with an excellent financial outcome, PPR is pursuing its strategy of refocusing on the individual customer and divesting of its business-to-business activities," Weinberg said in his statement on the Office Depot offer Tuesday. "Office Depot's offer reflects Guilbert's great quality and its strengths as the European leader in direct sales." Guilbert S.A. had sales of approximately 1.4 billion euros in 2002.

Office Depot says it hopes to complete the transaction by late spring. Though it expects the acquisition to be slightly dilutive in 2003, the U.S. company predicts that it will boost earnings by five to 10 percent starting in 2004.

As part of its business-to-business divestiture plan, in October, PPR announced the sale of its credit and financial services operation Finaref and customer credit subsidiary Facet to Credit Agricole and BNP Paribas, respectively. In January, the group sold subsidiary Kertel, a specialist distributor of prepaid telephone cards to retail customers, to telecommunications company Iliad for an undisclosed sum.

Le Figaro reported Tuesday that PPR may also soon sell Pinault Bois Materiaux, its building materials business, for at least 550 million euros. PPR has also said it plans to sell electrical components company Rexel by the end of 2004. Rexel sold its property portfolio of 46 European sites to UK industrial property specialist Ashtenne Holdings PLC last month.

All of this extra cash will certainly come in handy. PPR currently owns about 61 percent of Gucci Group's stock and must purchase all outstanding shares for $101.50 in March 2004.

Office Depot shares were down about three percent in afternoon trading on the New York Stock Exchange, at $11.30. PPR shares closed at 53 euros Tuesday, up less than one percent.