ODP Corporation to be Acquired by Atlas Holdings in $1B Deal
The ODP Corporation is set to be acquired by Atlas Holdings, a private equity group founded in 2002. The deal, expected to close by the end of 2025, values the company at approximately $1 billion. ODP's CEO, Gerry Smith, supports the transaction, believing it will bolster the company's growth prospects and customer partnerships. Following the acquisition, ODP will no longer be publicly traded.
ODP's second quarter earnings revealed a 7.6% year-over-year drop in total reported sales to $1.6 billion. This decline was primarily due to decreased sales in the Office Depot Division and reduced consumer traffic. The purchase price of $28 per share represents a 34% premium to ODP's closing share price on Friday. Atlas Holdings, with investments in sectors like building materials and packaging, will acquire ODP through an affiliate.
ODP had previously considered selling the business in 2022 but decided against it due to unfavourable macroeconomic conditions. However, the current deal, once approved by regulators and shareholders, will see ODP transition to a privately held company.
The acquisition of ODP by Atlas Holdings is expected to close by the end of 2025, subject to regulatory and shareholder approvals. The deal, valued at about $1 billion, is seen as an opportunity for ODP to strengthen its position and improve growth prospects under private ownership.
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