Office Depot To Go Private In $1 Billion Cash Deal With Atlas Holdings

Office Depot (ODP) announced Monday it has agreed to be acquired by an affiliate of Atlas Holdings for $28 per share in cash, valuing the company at roughly $1 billion. 

Office Depot’s stock jumped more than 30% in pre-market trade, with retail sentiment on Stocktwits rising to ‘bullish’ from ‘bearish’ territory over the past day.

The company said the purchase price represents a 34% premium over Office Depot’s closing share price last Friday. Upon completion, Office Depot will be delisted from the Nasdaq and will operate as a privately held company. The company’s board has unanimously approved the transaction, which is expected to be completed by the end of 2025. 

“This transaction, fully supported by our Board, provides a substantial premium for The ODP Corporation’s shareholders and will improve the company’s position for the next phase of growth,” said CEO Gerry Smith. He added that Atlas brings operational expertise, resources, and a proven track record of supporting companies, which will accelerate Office Depot’s B2B growth initiatives and strengthen its position as a trusted partner for customers.

The announcement follows Office Depot’s second-quarter (Q2) ‘Optimize for Growth’ restructuring plan, which came after the company reported an 8% year-over-year decline in revenue, including a 10% drop in its consumer-facing division driven by fewer store locations and lower retail traffic.

Atlas Holdings Managing Partner Michael Sher stated that the firm has a long history of transforming public companies into successful private enterprises. “We are uniquely positioned to do just that with The ODP Corporation,” Sher said. He emphasized Atlas’ ability to provide both human and financial capital to support Office Depot’s continued evolution amid a challenging retail environment.

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