By Abigail Summerville
-The ODP Company, which owns workplace provide retailers Workplace Depot and OfficeMax, agreed to be taken non-public by an affiliate of Atlas Holdings for about $1 billion, the businesses mentioned on Monday.
Funding agency Atlas can pay $28 per share to purchase ODP, which additionally owns ODP Enterprise Options, representing a 34% premium to the corporate’s closing share worth on September 19.
ODP, which is headquartered in Boca Raton, Florida, had been exploring a sale with funding financial institution JPMorgan, sources mentioned. Its board accredited the transaction, which is predicted to shut by the tip of the yr after receiving approval from regulators and ODP shareholders.
“Atlas brings an understanding of our business, together with the operational experience, assets and monitor file of supporting its corporations that may quick ahead our B2B progress initiatives and strengthen our place as a trusted companion to our prospects,” ODP’s CEO Gerry Smith mentioned in an announcement.
Greenwich, Connecticut-based Atlas was based in 2002 and owns 29 corporations within the manufacturing and distribution sectors.
Traders known as the deal optimistic, however stunning given an extended historical past of unsuccessful tie-ups between ODP and peer Staples, owned by Sycamore Companions.
ODP and Staples, which provide pens, paper and different merchandise to companies and people, reached merger agreements in 1996 and 2015, however each makes an attempt have been blocked by the Federal Commerce Fee, which mentioned a mix would cut back competitors out there for workplace provides bought to massive enterprise prospects. Staples approached ODP once more in 2021 with a $2.1 billion all-cash supply, however the firm rejected the deal.
ODP had been beneath strain from activist funding agency AREX Capital Companions and its market cap has fallen lately then as the corporate confronted extra competitors from e-commerce corporations like Amazon and Walmart, which additionally promote workplace provides. ODP operates round 830 shops.
(Reporting by Abigail Summerville in New York, Enhancing by Franklin Paul)
