Office Depot Parent to Be Acquired by Atlas Holdings for $1 Billion

Office Depot Parent to Be Acquired by Atlas Holdings for $1 Billion

September 22, 2025 - The ODP Corporation, the parent company of Office Depot and OfficeMax, has agreed to be taken private in a deal valued at approximately $1 billion. The buyer is an affiliate of Atlas Holdings, a private equity firm based in Greenwich, Connecticut. StreetInsider.com+3Reuters+3Office Depot Investor Relations+3

Deal Details

• Atlas Holdings will pay $28 per share in cash, which represents a 34% premium over ODP’s closing share price on September 19, 2025. Office Depot Investor Relations+2Reuters+2

• The transaction has received unanimous approval from ODP’s Board of Directors. Office Depot Investor Relations

• The company will become privately held after the deal closes, and its shares will be delisted from the Nasdaq stock exchange. The acquisition is expected to finalize by the end of 2025, pending regulatory and shareholder approval. Office Depot Investor Relations+2MarketScreener+2

Background: Why This Move?

ODP has been under pressure in recent years:

• The business posted declining revenues, down by 8% year-over-year in recent months, amid broader retail headwinds and fierce competition from e-commerce giants like Amazon and Walmart. CT Insider+2PYMNTS.com+2

• The number of Office Depot/OfficeMax retail locations has been shrinking; about 60 store closures in the past year, bringing total locations to roughly 830. CT Insider+1

• Also, the company has been losing money, recent reports indicate a loss of about $29 million over the first six months of its fiscal year. CT Insider

What Atlas Holdings Brings

Atlas Holdings is known for acquiring companies in manufacturing and distribution, then investing in operational improvements. Reuters+2PYMNTS.com+2

In announcing the acquisition, ODP’s CEO Gerry P. Smith emphasized that Atlas's industry experience, operational expertise, and resources will help accelerate ODP’s business-to-business (B2B) growth initiatives and strengthen its customer relationships. Office Depot Investor Relations+1 Atlas, similarly, stated that it sees potential in turning around underperforming public companies, bringing capital, managerial focus, and restructuring where needed. Atlas Holdings+1

Implications & Challenges

This acquisition could reshape how ODP operates and competes. Some of the anticipated effects and challenges include:

• Strategic shift: More emphasis likely on B2B operations and less on pure brick-and-mortar retail, especially as online and distribution channels grow.

• Cost structure changes: Retail closures and workforce reductions may continue or accelerate in order to improve profitability under private ownership.

• Regulatory review: The deal, like many in the retail sector, may face scrutiny from regulatory authorities concerned about competition, especially given past failed attempts by Staples to merge with or acquire ODP. Reuters+1

• Shareholder return vs. long-term investment: While shareholders are getting a premium now, success will depend on whether Atlas can navigate ongoing challenges, evolving consumer behavior, supply chain costs, and competition.

Centrist Take: A Measured View

From a centrist perspective, this deal reflects both the reality of modern retail challenges and the potential for a turnaround, provided it’s managed well.

• It’s positive that shareholders are receiving a significant premium, which shows that the board negotiated well given the company’s recent financial struggles.

• Being private can give ODP the agility to make changes without the pressure of quarterly earnings calls, investing in efficiencies, restructuring where needed, and perhaps reinvestment in what works (e.g. B2B, e-commerce).

• But there’s a risk: employees, local communities, and smaller customers may bear cost-cutting actions, and the transition must be handled with care to protect jobs, customer service, and the retail brand’s value.

What to Watch

• How store closures, staffing, and overhead are managed under the new ownership.

• Whether ODP can regain ground in non-retail segments (B2B, business services) to offset retail decline.

• How Atlas Holdings coordinates any technology or logistics upgrades to improve efficiency.

• How consumers respond, whether loyalty to Office Depot/OfficeMax remains strong, especially as online options continue to grow.

This acquisition marks a turning point for The ODP Corporation. For years, the company has been squeezed by market pressures. With a private equity firm at the helm, ODP may have a clearer path for reinvention, but whether that leads to restored strength, or more disruption, depends on execution.