The ODP Corporation Delays Public Company Separation to Evaluate Potential Sale of Its Consumer Business

The ODP Corporation (“ODP” or the “Company”) (NASDAQ:ODP), a leading provider of business services, products and digital workplace technology solutions through an integrated B2B distribution platform, today announced that its Board of Directors determined to delay the previously announced public company separation to evaluate a potential sale of the Company’s consumer business.

In May 2021, the Company announced that its Board of Directors unanimously approved a plan to separate ODP into two independent, publicly-traded companies by means of a tax-free spin-off to ODP shareholders. In November 2021, USR Parent, Inc., the parent company of Staples and a portfolio company of Sycamore Partners, reaffirmed its non-binding proposal to acquire the Company’s consumer business, including the Office Depot and OfficeMax retail stores business, the Company’s direct channel business (officedepot.com), and the Office Depot and OfficeMax intellectual property, including all brand names, for $1 billion in cash. The Company remains in conversation with Sycamore as it further evaluates the potential value and regulatory risk of Sycamore’s proposed transaction.

In December 2021, ODP’s Board of Directors received a non-binding proposal from another third party to acquire the Company’s consumer business. The terms of that proposal are confidential.

The Company’s Board of Directors is carefully reviewing both proposals with the assistance of its financial and legal advisors to determine the course of action that it believes is in the best interests of the Company and its shareholders. While the Company has previously been focusing on completing the public company separation during the first half of 2022, it has determined to delay further work on the separation in order to avoid incurring potentially unnecessary separation costs while it focuses on a potential sale of the consumer business. There can be no assurance that a sale of the consumer business will take place and, if it were to take place, as to the terms of such a sale.

“We look forward to further evaluating the potential sale of ODP’s consumer business to determine whether a sale may provide greater value for our shareholders than a public company separation,” said Gerry Smith, chief executive officer of The ODP Corporation. “If the consumer business is not sold, then ODP’s Board of Directors will reevaluate the advisability and timing of the public company separation.”
more at: https://investor.theodpcorp.com/news-releases/news-release-details/odp-corporation-delays-public-company-separation-evaluate

Related Posts

Digital and Analog Worlds Unite in New Magazine

Even in the era of “there’s an app for that,” our largely tech-first culture is reclaiming timeless analog elements. Today the Paper & Packaging – How Life Unfolds® campaign unveils a new limited-edition print publication, Pod Papers Magazine, bringing podcasts to life in a way that has never been done before – in print. Complimentary copies of Pod Papers will be available exclusively in store at Barnes & Noble locations nationwide while supplies last. “Our culture, though increasingly digital, is in the midst of a moment of reflection. For many, turning digital into analog is helping fuel inspiration and creativity,” observes Mary Anne Hansan, president of the Paper and Packaging Board. “Pod Papers is our answer to this cultural moment – it’s meant to be pored over and become a keepsake.” Click Read More below for additional information.

PRC Releases Report and Dashboard Analyzing Postal Service’s FY 2022 Finances

The Postal Regulatory Commission released its Financial Analysis report, an in-depth evaluation of the overall financial position of the United States Postal Service in Fiscal Year (FY) 2022. With this year’s Financial Analysis report, the Commission introduces a fully accessible dashboard with downloadable data that provides a visual snapshot of key components of its analysis, including balance sheet and mail volume trends from 2007 to 2022. The dashboard is located on the Commission’s website, www.prc.gov. The enactment of the Postal Service Reform Act on April 6, 2022, resulted in significant changes to the Postal Service’s retirement obligations by canceling the outstanding $57 billion retiree health benefit liability, the annual payments for the retiree health benefits normal costs, and Retiree Health Benefit Fund amortization payments. In FY 2022, the Postal Service recorded a net operating loss of $0.5 billion, a $2.2 billion improvement over FY 2021. Furthermore, the Postal Service’s operating revenue increased by approximately $1.6 billion compared to FY 2021. This increase in revenue was primarily driven by First-Class Mail and USPS Marketing Mail rate increases. Competitive revenue declined from FY 2021 when package volumes were higher because of the pandemic-related surge in e-commerce, which continues to slow as the economy recovers.

Lack of IRS Paper-Based Documents Harms Millions of Americans

American Forest & Paper Association (AF&PA) President and CEO Donna Harman issued the following statement regarding the Internal Revenue Service (IRS) denying paper-based information and services. “The number of people who experienced identity theft while filing their taxes in 2016 is approximately the population of Anaheim, California or Tampa, Florida.[1] With news of data hacks and security breaches breaking regularly, government officials have increasingly turned to paper-based documents for added protection. “Citizens will be complying with new tax rules this year. Unfortunately, the IRS no longer makes printed instructions available unless ordered for payment. Readily available, printed instructions will be needed more than ever before as people prepare their tax returns given these changes. Click Read More below for additional information.
Back To Top
×Close search
Search