The ODP Corporation, parent of office supply retailer Office Depot, has agreed to be acquired by an affiliate of Atlas Holdings for $1 billion, a deal that will turn it into a private company.

Atlas, which owns and operates a global family of manufacturing and distribution businesses, will pay $28 per share in cash, representing a premium of 34 per cent to ODP’s closing share price on September 19.

Following the transaction, expected to be completed by the end of this year, the company’s shares of common stock will no longer be listed on the Nasdaq stock exchange.

Gerry Smith, CEO of The ODP Corporation, said the deal will enable the company’s 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,” he continued.

Atlas managing partner Michael Sher added: “The ODP Corporation’s leadership has already taken several steps to mitigate the challenging retail environment, and we are the right partners to support The ODP Corporation’s continued evolution in its next chapter.”

The ODP’s board has unanimously approved the transaction. The deal remains subject to customary closing conditions, including regulatory approvals and shareholder approval.

The ODP Corporation operates under three main segments, namely Office Depot, ODP Business Solutions and supply chain business Veyer. The company reported a 7.6 per cent sales decline in the second quarter ended June 28. 

The Office Depot division, which operates Office Depot and OfficeMax retail locations and e-commerce sites, reported a 10 per cent sales decline in the quarter, primarily due to 60 fewer retail locations resulting from planned store closures and lower demand.