ODP Corporation Agrees to $1 Billion Acquisition by Atlas Holdings, Going Private

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, will result in the company becoming privately held, ceasing its public stock trading. The acquisition is expected to close by the end of 2025, contingent upon regulatory and shareholder approvals. Atlas Holdings, a private equity firm with investments across various sectors, aims to leverage its operational expertise to enhance ODP's business-to-business growth initiatives.

Why It's Important?

This acquisition marks a significant shift for ODP Corporation, which has previously explored selling options but decided against it due to macroeconomic conditions. By going private, ODP aims to focus on its B2B operations, including ODP Business Solutions and Veyer, amidst declining sales and reduced retail presence. The move could potentially strengthen ODP's market position and operational capabilities, benefiting its shareholders with a substantial premium. Atlas Holdings' involvement suggests confidence in ODP's future growth and operational strategies, which could lead to improved service offerings and customer partnerships.

What's Next?

Following the acquisition, ODP Corporation will transition into a privately held entity, allowing for potentially more agile decision-making and strategic shifts without the pressures of public market scrutiny. The focus will likely be on expanding B2B services and optimizing operational efficiencies. Stakeholders, including employees and customers, may experience changes in service delivery and business operations as Atlas Holdings implements its growth strategies. Regulatory and shareholder approvals remain as critical steps before the acquisition can be finalized.