ODP Corporation to Be Acquired by Atlas Holdings for $28 Per Share
ODP Corporation has agreed to be acquired by an affiliate of Atlas Holdings for $28 per share in cash. The deal, valued at around $1 billion, represents a 34% premium to ODP's closing share price on Friday. The acquisition is expected to close by the end of 2025, subject to regulatory and shareholder approvals.
ODP's Chief Executive Officer, Gerry Smith, supports the transaction, believing it will strengthen the company's position and improve its prospects for future growth. The acquisition is being made by Atlas Holdings, a private equity group established in 2002 with investments in sectors such as building materials, construction services, packaging, and paper. Notably, the group that initially acquired ODP Corporation was Platinum Equity, which has a diverse investment portfolio including manufacturing, distribution, logistics, and technology services.
ODP's second quarter earnings revealed a 7.6% year-over-year drop in total reported sales to $1.6 billion, primarily due to lower sales in the Office Depot Division. Following the acquisition, ODP will cease trading stock on public markets and become a privately held company.
The acquisition of ODP Corporation by Atlas Holdings is set to conclude by the end of 2025, pending necessary approvals. The deal, valued at approximately $1 billion, is expected to bolster ODP's position and support its next phase of growth, as per the company's CEO.
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