An-Office-Depot-store Image source:Joe Raedle / Staff via Getty
A Strategic Exit from Wall Street
The ODP Corporation — parent company of Office Depot and OfficeMax — has agreed to a $1 billion acquisition by Atlas Holdings, marking a decisive shift for the century-old office supply retailer. Under the deal, Atlas will purchase ODP for $28 per share in cash, a 34% premium over its most recent closing price. Pending regulatory and shareholder approvals, the transaction is expected to close by the end of 2025.
Once complete, ODP will become a privately held company, removing itself from the scrutiny of public markets and setting the stage for its next growth chapter.
Why This Matters: ODP’s Evolution Beyond Retail
ODP’s move to go private is not entirely unexpected. In 2022, the company shelved earlier plans to sell or spin off its retail arm, citing unfavorable macroeconomic conditions. Now, with pressure mounting from shrinking store traffic and declining sales, privatization gives ODP more flexibility to pivot.
The company has been gradually shifting its identity away from retail and toward B2B solutions, including:
·ODP Business Solutions – a major supplier of office products to businesses.
·Veyer – its distribution and logistics services arm.
This pivot aligns with Atlas Holdings’ operational expertise across industries such as packaging, paper, and building materials — sectors where efficiency, logistics, and scale matter more than brand-driven consumer traffic.
The State of the Business: Retail Declines, B2B Opportunities
ODP’s second-quarter 2024 earnings painted a stark picture of retail headwinds:
Sales fell 7.6% year-over-year to $1.6 billion.
The Office Depot Division drove much of the decline, with 60 fewer stores than the previous year and continued drops in consumer traffic to both stores and its website.
The numbers underscore why ODP’s future may depend less on big-box stores and more on business contracts, logistics services, and technology-enabled supply chains.
CEO’s Take: A Faster Track to Growth
“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,” CEO Gerry Smith said. He added that Atlas’ resources and operational track record will help accelerate ODP’s B2B initiatives and cement its role as a trusted partner for customers.
For Atlas, which manages a diverse portfolio of industrial companies, ODP represents a chance to apply operational discipline to a business in transition.
Editor’s Analysis: What This Deal Signals
ODP’s decision to go private reflects three larger industry dynamics:
1、Retail consolidation is accelerating. Big-box office supply chains face secular decline as consumer traffic shifts online or disappears altogether.
2、B2B services are the future. Selling directly to businesses and leveraging logistics networks provides steadier, higher-margin revenue streams than consumer retail.
3、Private equity is the reshaping force. By removing quarterly Wall Street pressures, Atlas can reposition ODP with longer-term bets on business supply and logistics growth.
The unanswered question: can Atlas unlock enough value in ODP’s B2B pivot to offset the structural decline in office retail?
This article references data and reporting from[RetailDive].