Atlas Holdings, which operates business in multiple sectors from automotive to supply chain management to wood products, has entered into a definitive agreement to acquire The ODP Corp., parent of Office Depot and OfficeMax.
ODP will become a private company as part of the $28 per share cash deal. The ODP board of directors unanimously approved the transaction, which Atlas and ODP reported they expect to complete by 2025’s end.
“This transaction, fully supported by our board, provides a substantial premium for The ODP Corp.’s shareholders and will improve the company’s position for the next phase of growth,” said Gerry Smith, ODP CEO. “Atlas brings an understanding of our industry, along with the operational expertise, resources and track record of supporting its companies that will fast forward our B2B growth initiatives and strengthen our position as a trusted partner to our customers. Atlas’ commitment demonstrates their confidence in our future and the strong momentum we’ve achieved through our focus on operational excellence and disciplined execution. We’re excited about our path for the future.”
Atlas managing partner Michael Sher added, “Atlas has a long history of transitioning public companies into successful private enterprises and we are uniquely positioned to do just that with The ODP Corp. an iconic American company. Atlas operates like a diversified holding company, and we have a proven record of delivering the human and financial capital necessary to create long-term value in our businesses. The ODP Corp.’s leadership has already taken several steps to mitigate the challenging retail environment, and we are the right partners to support The ODP Corp.’s continued evolution in its next chapter. We look forward to completing this transaction which will provide a positive outcome for The ODP Corp.’s associates, customers, suppliers and shareholders.”
ODP’s main competitor in the office superstore sector, Staples, was bought out and taken private by private equity firm Sycamore Partners in 2017.
