Office Depot Parent to Be Acquired by Atlas Holdings for $1B

The ODP Corporation, which owns office supply retailers Office Depot and OfficeMax, agreed to be taken private by an affiliate of Atlas Holdings for approximately $1 billion, the companies said on Monday. Investment firm Atlas will pay $28 per share to buy ODP, which also owns ODP Business Solutions, representing a 34 percent premium to the company's closing share price on Sept. 19. ODP, which is headquartered in Boca Raton, Florida, had been exploring a sale with investment bank JPMorgan, sources said. Its board approved the transaction, which is expected to close by the end of the year after receiving approval from regulators and ODP shareholders.

Total Retail's Take: ODP Corporation being taken private with the Atlas Holdings deal signals a renewed focus on operational efficiency and a leaner cost structure for the office supplies company. Furthermore, the 34 percent premium over last Friday's share price indicates investors believe there’s underrealized value in the organization, particularly within its business solutions/B2B segments. Lastly, going private may enable ODP to make long-term investments in the business by freeing it from being so quarterly-earnings focused). These investments, whether in product, supply chain, marketing, real estate, etc., could help strengthen the business going forward.