Office Depot parent ODP to be acquired, go private: What this means for investors

Shares of the ODP Corporation, the small-cap parent company of Office Depot and OfficeMax, soared by a third yesterday, September 22. This happened after it announced a definitive agreement to be acquired by Atlas Holdings in an all-cash transaction at a premium. The acquisition could "reshape the competitive landscape for B2B services and office supply distribution in North America," says Noble Capital Markets.

Shares of ODP surged 33% to close at $27.68 per share yesterday, marking about a one-year high. Investors reacted to the news that the office supplies retailer will be acquired by Atlas Holdings, a private equity firm specializing in distressed assets.

Under the agreement, Atlas will buy ODP for about $1 billion, or $28 per share, a 34% premium to the stock’s closing price on September 19, the day before the announcement.

The deal has been approved by ODP’s board and now awaits shareholder and regulatory approval. Closing is expected by the end of this year, after which ODP shares will be delisted from the Nasdaq.

“This transaction... provides a substantial premium for [ODP shareholders] and will improve the company’s position for the next phase of growth,” said ODP CEO Gerry P. Smith

Becoming part of Atlas’s portfolio is expected to give ODP the flexibility to continue evolving without the quarterly pressures of public markets, Noble argues. Atlas’s experience in transitioning public companies into successful private enterprises is anticipated to provide the financial and operational support needed to accelerate ODP’s growth trajectory and reinforce its competitive position. "If completed, the acquisition will represent one of Atlas Holdings’ most high-profile moves in recent years and could reshape the competitive landscape for B2B services and office supply distribution in North America," Noble argues.

Meanwhile, the law firm Ademi, which specializes in protecting the rights of individual investors in shareholder litigation, said it is investigating ODP for "possible breaches of fiduciary duty and other violations of law in its transaction with Atlas Holdings." It "unreasonably limits" competing transactions for ODP by imposing a significant penalty if ODP accepts a competing bid.

The ODP Corporation traces its roots to 1986, when it was founded as Office Depot and went public two years later on the Nasdaq. For a time, the company expanded rapidly in the U.S. and abroad. That growth slowed as e-commerce platforms, particularly Amazon, gained popularity, Seeking Alpha notes. Office Depot sought to strengthen its position through a merger with rival Staples, but regulators blocked the deal, citing competition concerns, Reuters reported.

In 2013, Office Depot merged with OfficeMax. Two years later it again reached an agreement to combine with Staples, and once again it did not work out. In 2017, the company acquired CompuCom Systems, marking a strategic pivot into IT services and solutions.

The company adopted its current name, the ODP Corporation, in 2020 as it shifted focus toward B2B sales. A year later, Staples returned with a $2.1 billion takeover offer, but this time ODP turned it down.

In recent years, ODP has come under pressure from hedge fund AREX Capital, Reuters recalls. The shareholder criticized the company for moving too slowly in seeking alternative buyers.

In the second quarter of 2025, ODP’s revenue fell 7.6% year over year to $1.59 billion. Still, the company managed to break even on a net income per diluted share basis, compared with a loss of $0.12 per share a year earlier.

The AI translation of this story was reviewed by a human editor.