The ODP Corporation to Go Private in $1 Billion Acquisition by Atlas Holdings
ODP Corporation to Be Acquired by Atlas Holdings
The ODP Corporation (ODP) announced on September 22, 2025, that it has entered into a definitive agreement to be acquired by an affiliate of Atlas Holdings in an all-cash transaction. The deal, valued at approximately $1 billion, will see Atlas Holdings pay $28 per share for ODP’s outstanding common stock. This announcement spurred a notable market reaction, with ODP's stock demonstrating a 35.5% surge over the past month, significantly outpacing the Zacks S&P 500 composite's 3.5% change.
Acquisition Details and Shareholder Premium
The $28 per share offer represents a substantial 34% premium to The ODP Corporation's closing share price on September 19, 2025. Upon the anticipated completion of the transaction by the end of 2025, ODP Corporation will transition into a privately held entity, resulting in its delisting from the NASDAQ stock exchange. The acquisition is contingent upon customary closing conditions, including regulatory approvals and approval from ODP Corporation shareholders. J.P. Morgan Securities LLC is serving as the exclusive financial advisor to The ODP Corporation, while Lazard advises Atlas Holdings.
Market Reaction and Strategic Reorientation
Investor enthusiasm for ODP stock in the immediate aftermath of the announcement was primarily driven by the attractive 34% acquisition premium. This move by Atlas Holdings signals a clear strategic intent to support ODP's ongoing pivot from its traditional retail office supplies business towards its burgeoning Business-to-Business (B2B) e-commerce and distribution operations. This strategic reorientation has been a key focus for ODP, with its Business Solutions unit already accounting for 52% of total sales in the first half of 2025. By going private, ODP aims to operate free from the quarterly pressures of public markets, thereby enabling accelerated investment and expansion in its B2B initiatives, which include recent developments such as a supply contract with Omnia Corp. for hotel chains and a 15-minute in-store pickup service for online orders.
Broader Context and Valuation Considerations
The acquisition comes at a pivotal time for ODP, which has seen its market value decrease from over $5 billion a decade ago amid declining consumer demand for traditional office products. The transition to private ownership is anticipated to provide the operational flexibility required to fully realize its B2B growth potential. Prior to the acquisition announcement, analyst sentiment, as reflected by Zacks Investment Research, presented a mixed picture. The ODP Corporation held a Zacks Rank 4 (Sell), suggesting a potential for underperformance relative to the broader market in the near term. However, it also boasted a Zacks Value Style Score of A, indicating that it was trading at a discount compared to its peers. The company's latest reported financials for Q2 2025 showed revenues of $1.59 billion, a 7.6% year-over-year decline, yet its EPS of $0.51 significantly beat analyst consensus estimates of $0.33 by $0.18. Consensus estimates for the current quarter anticipate earnings of $0.82 per share, a 15.5% year-over-year increase, though the full fiscal year consensus indicates a 12.7% decline in earnings from the prior year. The acquisition premium effectively overrides these short-term analytical complexities, offering a clear exit for shareholders at a favorable valuation.
Expert Commentary
Gerry P. Smith, Chief Executive Officer of The ODP Corporation, emphasized the immediate benefits to shareholders and the strategic advantages of the partnership:
> "This transaction, fully supported by our Board, provides a substantial premium for The ODP Corporation's shareholders and and will improve the company's position for the next phase of growth. 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."
Michael Sher, Managing Partner of Atlas Holdings, highlighted his firm's experience in similar transitions:
> "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 an iconic American company. We look forward to partnering with Gerry and the entire ODP team to build on the company’s strong foundation and accelerate its transformation."
Looking Ahead
The completion of the acquisition by the end of 2025 will mark a significant turning point for The ODP Corporation. As a private entity, the company will be better positioned to execute its long-term strategy of expanding its B2B e-commerce and distribution leadership. Investors will monitor the fulfillment of regulatory and shareholder approvals in the coming months. The strategic shift under Atlas Holdings aims to unlock further growth potential, enabling ODP to consolidate its position as a key provider of products, services, and technology solutions to businesses and consumers without the immediate pressures of public market quarterly reporting.
