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U.S. Office Products had nine divisions at the top of 1997: workplace provides, workplace furniture, espresso and beverage service, Mail Boxes Etc., Blue Star (the brand new Zealand workplace-supplies operation), school supplies, company travel, print management, and expertise solutions. Although Mail Boxes had 1996 income of solely $59 million, it was the quickest-rising nonfood franchiser within the nation, and its acquisition offered U.S. Ledecky said U.S. Office Products planned to make use of its central buying system, which was supplying its workplace-product dealerships, to distribute packing and mailing provides to Mail Boxes branches at decrease costs. Office Products' revenues, and inventory in them was to be distributed to shareholders of the dad or mum company within the form of a tax-free dividend. But in January 1998 the corporate announced it will spin off the latter four divisions into separate public corporations and focus on its core workplace-supply and companies businesses. Morgan said written agreements could be developed with the brand new firms to advertise continued cross-promoting. Office Products to repurchase about 28 percent of its 133 million outstanding shares of frequent stock at $27 a share, payable in money and stock within the spun-off companies.