ODP Corporation (NASDAQ:ODP) struck a deal on Monday to be acquired by an affiliate of Atlas Holdings for $28 per share in cash. The purchase price represents a premium of 34% to ODP Corporation’s (NASDAQ:ODP) closing share price on September 19 and values the company at approximately $1 billion. The board has already approved the deal.
“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,” highlighted ODP (ODP) CEO Gerry Smith.
ODP Corporation’s (ODP) dates back to its founding in 1986 as Office Depot. The company started trading on the Nasdaq in 1988. After growing rapidly in the U.S. and expanding internationally, the chain started to feel pressure from Amazon (AMZN) and other e-commerce sellers. Office Depot merged with OfficeMax in 2013. In 2017, Office Depot acquired CompuCom Systems to initiate a strategic pivot to IT services and solutions.
After reorganizing as ODP Corporation in 2020, the company began to pivot even further to business-to-business sales. ODP Corporation still operates over 900 retail locations.
The ODP (ODP) buyout is expected to close before the end of the calendar year.
Shares of ODP jumped 32.5% in premarket trading.