ODP Corporation to Go Private in $1 Billion Deal with Atlas Holdings

What's Happening?

The ODP Corporation, owner of Office Depot and OfficeMax, has announced an agreement to be acquired by Atlas Holdings for $28 per share in cash, valuing the company at approximately $1 billion. This decision, unanimously approved by ODP's board, is expected to close by the end of 2025, pending regulatory and shareholder approvals. The acquisition represents a 34% premium over ODP's closing share price prior to the announcement. Once the deal is finalized, ODP will become a privately held company, ceasing its public stock trading. Atlas Holdings, a private equity firm with investments in various sectors, will bring its industry expertise to support ODP's growth initiatives.

Why It's Important?

This acquisition marks a significant shift for ODP Corporation, which has previously explored selling the business but decided against it due to macroeconomic conditions. By going private, ODP aims to enhance its position for future growth, particularly in its B2B operations, which include ODP Business Solutions and Veyer. The move is expected to provide ODP with the operational expertise and resources needed to strengthen its market position and customer relationships. The deal reflects Atlas Holdings' confidence in ODP's potential and the momentum achieved through operational excellence.

What's Next?

Following the acquisition, ODP Corporation will focus on advancing its B2B growth initiatives under the guidance of Atlas Holdings. The transition to a privately held company may lead to strategic changes in operations and business models, aimed at improving efficiency and market competitiveness. Stakeholders, including employees and customers, may experience changes in service delivery and business strategies as ODP aligns with Atlas Holdings' broader investment portfolio.