Atlas to acquire ODP Corporation for $1 billion in take-private deal

BOCA RATON/GREENWICH - The ODP Corporation (NASDAQ:ODP), currently trading at a modest P/E ratio of 12.8 with an EBITDA of $255 million, has agreed to be acquired by an affiliate of Atlas Holdings in a cash deal valuing the office supply retailer at approximately $1 billion, the companies announced Monday.

Under the terms of the agreement, ODP shareholders will receive $28 per share in cash, representing a 34% premium to the company’s closing stock price on September 19. According to InvestingPro analysis, this offer aligns with the company’s Fair Value estimate, suggesting a fair deal for shareholders. Upon completion of the transaction, expected by the end of 2025, ODP will become a privately held company and its shares will no longer be listed on the NASDAQ.

The Board of Directors of ODP unanimously approved the transaction, which remains subject to customary closing conditions, including regulatory approvals and approval by ODP shareholders.

"This transaction provides a substantial premium for The ODP Corporation’s shareholders," said Gerry P. Smith, Chief Executive Officer of ODP, in a statement included in the press release announcing the deal.

Atlas Holdings, headquartered in Greenwich, Connecticut, owns and operates 29 companies across various sectors with more than 60,000 employees worldwide. The firm generates over $20 billion in annual revenues through its portfolio companies.

Michael Sher, Atlas Managing Partner, said the firm has "a long history of transitioning public companies into successful private enterprises" and expressed confidence in ODP’s future.

ODP, which operates through brands including Office Depot and OfficeMax, provides business products, services and technology solutions through retail stores and online channels.

J.P. Morgan Securities is serving as exclusive financial advisor to ODP, while Lazard is advising Atlas Holdings on the transaction.

In other recent news, ODP Corporation reported its Q2 2025 earnings, surpassing earnings per share (EPS) expectations with an actual EPS of $0.51, compared to the anticipated $0.36. However, the company’s revenue came in slightly below expectations at $1.58 billion, against a forecast of $1.59 billion. Additionally, ODP Corporation’s Business Solutions division has secured a significant hospitality purchasing contract with OMNIA Partners, the largest group purchasing organization in the nation. This agreement will enable ODP Business Solutions to supply OMNIA Partners members with various hospitality-focused products. These developments highlight ODP Corporation’s ongoing efforts to expand its market presence and improve its financial performance.

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