In a straightforward flip of events for a sizeable player in the office supply industry, ODP Corp. will change hands as it steps off the public stage and into the private sector. The parent company of well-known retailers Office Depot and OfficeMax, embraced in an all-cash transaction by Atlas Holdings, an affiliate of the Connecticut-based private equity firm, was reportedly sold for nearly $1 billion.
An affiliate of Atlas Holdings, a firm known for its 29 businesses spread across manufacturing and distribution, has agreed to purchase the Boca Raton-based ODP Corp. for $28 per share, according to Sun-Sentinel. The deal, expected to finalize by year's end, signals the transition of ODP from a publicly traded entity on NASDAQ to a private corporation, a move welcomed by investors as shares leaped beyond the offer to $33 by midday following the announcement. The shift reflects almost a 34% premium on the price prior to the deal's disclosure.
Atlas Holdings appears set to rejig ODP's business model, with a focus on propelling B2B growth initiatives. "This transaction, fully supported by our Board, provides a substantial premium for The ODP Corporation’s shareholders and will improve the company’s position for the next phase of growth," ODP’s CEO, Gerry P. Smith, was quoted by Sun-Sentinel. He detailed that Atlas brings operational expertise and resources instrumental for strengthening ODP's customer relationships.
After the transaction, which surfaced yesterday and is subject to regulatory green lights and shareholder thumbs up, Office Depot's operation umbrella will fold into Atlas Holdings, defined by past experience in successfully transitioning public firms to private entities. According to a WPBF article, Atlas Holdings, with roots dating back to 2002 and sporting a diverse portfolio from automotive to food manufacturing, seems to see the ODP acquisition as ripe for their brand of long-term value generation.
ODP Corp., tracing its origins to 1986 with the establishment of Office Depot in Fort Lauderdale, has endured several corporate transformations over the decades. Having swallowed OfficeMax in 2013, it side-stepped acquisition attempts by Staples and rebranded itself as ODP Corp. in 2022. The company, having shed its Boca Raton campus for almost $104 million two years ago, now succumbs to a fate common in the retail environment—an adaptation to the ebb and flow of market forces, as reported by Sun-Sentinel.
