ODP Corporation to Go Private in $1B Deal, CEO Backs Transaction
ODP Corporation is set to become a privately held company after agreeing to a $28 per share cash deal with an affiliate of Atlas Holdings. The transaction, which represents a 34% premium to ODP's closing share price on Friday, values the company at about $1 billion.
Upon completion, ODP will no longer trade stock on public markets. The purchase is supported by ODP's Chief Executive Officer Gerry Smith and the Board, who believe it will enhance the company's growth prospects. The deal is expected to close by the end of 2025, subject to regulatory and shareholder approvals.
ODP's second quarter earnings showed a 7.6% year-over-year decrease in total reported sales to $1.6 billion, primarily due to lower sales in the Office Depot Division. This was attributed to a reduction in retail stores and decreased consumer traffic. However, Atlas Holdings' investment signals confidence in ODP's future and the strong momentum achieved through operational excellence and disciplined execution.
Following the deal, ODP will be owned by Atlas Holdings, a private equity group founded in 2002 with investments in various sectors including building materials, construction services, packaging, and paper. Bain Capital, the private equity group that previously bought Office Depot and OfficeMax, also has investments in sectors like healthcare, technology, retail, and financial services.
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