A Greenwich-based private equity firm has agreed to purchase the publicly traded parent company of Office Depot in an $842 million all-cash deal.
Atlas Holdings has entered into a definitive agreement to acquire all 30.08 million shares of ODP Corp. at $28 per share. The deal carries a 34% premium over ODP’s closing share price Friday, giving the company a valuation of about $1 billion.
Once the deal closes, ODP will become privately held and its common stock will be delisted from the Nasdaq.
Gerry P. Smith, ODP’s CEO, said “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.”
ODP’s board of directors unanimously approved the deal, which is expected to be completed by the end of this year, subject to customary closing conditions, including regulatory approvals and approval by ODP’s shareholders.
“Atlas has a long history of transitioning public companies into successful private enterprises and we are uniquely positioned to do just that with The ODP Corporation — an iconic American company,” said Atlas Managing Partner Michael Sher. “Atlas operates like a diversified holding company, and we have a proven record of delivering the human and financial capital necessary to create long-term value in our businesses.”
Altas bought BNY’s former Greenwich location for $13.5 million in August.
Atlas, which was founded in 2002, owns and operates 29 companies that employ more than 60,000 workers across 375 facilities worldwide. Its companies serve a variety of sectors, from automotive supply to building materials to food manufacturing and distribution. Together, they make more than $20 billion in annual revenue.
