The provider of products, services and technology solutions agreed to be acquired by an affiliate of Atlas Holdings, an owner of operator of 29 manufacturing and distribution businesses, in a deal that values it at about $1 billion, the companies said in a Monday (Sept. 22) press release.
The transaction is expected to be completed by the end of the year, subjected to customary closing conditions, according to the release.
When the transaction is completed, The ODP Corporation will become a privately held company, per the release.
Gerry P. Smith, CEO of The ODP Corporation, said in the release that the transaction will “improve the company’s position for the next phase of growth.”
“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,” Smith said.
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Atlas Managing Partner Michael Sher said in the release that Atlas has a proven record of transitioning public companies into successful private enterprises and delivering the human and financial capital necessary to create long-term value.
“The ODP Corporation’s leadership has already taken several steps to mitigate the challenging retail environment, and we are the right partners to support The ODP Corporation’s continued evolution in its next chapter,” Sher said.
In an Aug. 6 earnings release, The ODP Corporation said its second-quarter sales of $1.6 billion were down 8% from the same period a year earlier.
The company attributed the drop primarily to its Office Depot Division having 60 fewer retail stores than it had the previous year and seeing less retail and online consumer traffic. The ODP Corporation also said the ODP Business Solutions Division saw lower sales.
“In our consumer segment, we meaningfully improved same-store sales trends versus last year, underscoring the effectiveness of our targeted sales strategies and strong value proposition,” Smith said in the earnings release. “Meanwhile, in our B2B distribution business, we achieved approximately a 200-basis point improvement in year-over-year revenue trends, driven by strong sales traction with new customers and early contributions from our expansion into the hospitality sector.”
It was reported in June 2022 that the board of The ODP Corporation rejected “public and private non-binding proposals” that it received for the sale or spin-off of its consumer brands.
