GREENWICH – Atlas Holdings of Greenwich has purchased the parent company of Office Depot for about $1 billion, both companies announced today.
The ODP Corp., a leading provider of products, services and technology solutions to businesses and consumers, today announced that it has entered into a definitive agreement to be acquired by an affiliate of Atlas Holdings, which owns and operates a global family of manufacturing and distribution businesses, for $28 per share in cash.
That puts the purchase price at about $1 billion. The sale value represents a premium of 34% to ODP’s closing share price on Sept. 19. Upon completion of the transaction, ODP will become a privately held company, and shares of common stock will no longer be listed on the NASDAQ stock exchange.
“This transaction, fully supported by our board, provides a substantial premium for The ODP Corporation’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 said his company considers this purchase another of the many they have made in building their 23-year-old firm into a diversified brand.
“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 Corporation – an iconic American company,” said Atlas Managing Partner Michael Sher. “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’s leadership has already taken several steps to mitigate the challenging retail environment, and Sher believes Atlas is the right partner to support their evolution.
The Board of Directors of The ODP Corporation unanimously approved the transaction, which is expected to be completed by the end of 2025. The transaction is subject to customary closing conditions, including regulatory approvals and approval by The ODP Corporation shareholders.
J.P. Morgan Securities LLC is serving as exclusive financial advisor and Simpson Thacher & Bartlett LLP is serving as legal advisor to The ODP Corporation. Lazard is serving as financial advisor and Willkie Farr & Gallagher LLP is serving as legal advisor to Atlas Holdings.
