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 with an online presence and approximately
1,100 stores, today confirmed that its Board of Directors has
received a proposal from USR Parent, Inc. (“Staples”), the parent
company of Staples and a portfolio company of Sycamore Partners, to
acquire the Company’s consumer business for $1 billion in cash.
ODP’s Board of Directors is carefully reviewing Staples’
proposal 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. No action is
required by the Company’s shareholders at this time.
Last month, the Company announced a plan to separate into two
independent, publicly-traded companies, each with a unique and
highly focused strategy and investment profile.
Simpson Thacher & Bartlett LLP and Goldman Sachs & Co.
LLC are acting as legal and financial advisor to the Company,
respectively.
About The ODP Corporation
The ODP Corporation (NASDAQ:ODP) is a leading provider of
business services and supplies, products and digital workplace
technology solutions to small, medium and enterprise businesses,
through an integrated business-to-business (B2B) distribution
platform, which includes world-class supply chain and distribution
operations, dedicated sales professionals and technicians, online
presence, and approximately 1,200 stores. Through its banner brands
Office Depot®, OfficeMax®, CompuCom® and Grand&Toy®, as well as
others, the Company offers its customers the tools and resources
they need to focus on their passion of starting, growing and
running their business. For more information, visit
news.theodpcorp.com and investor.theodpcorp.com.
The ODP Corporation and Office Depot are trademarks of The
Office Club, Inc. OfficeMax is a trademark of OMX, Inc. CompuCom is
a trademark of CompuCom Systems, Inc. Grand&Toy is a trademark
of Grand & Toy, LLC in Canada. ©2020 Office Depot, LLC. All
rights reserved. Any other product or company names mentioned
herein are the trademarks of their respective owners.
FORWARD LOOKING STATEMENTS
This communication may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements or disclosures may discuss goals, intentions
and expectations as to future trends, plans, events, results of
operations, cash flow or financial condition, the potential impacts
on our business due to the unknown severity and duration of the
COVID-19 outbreak, or state other information relating to, among
other things, the Company, based on current beliefs and assumptions
made by, and information currently available to, management.
Forward-looking statements generally will be accompanied by words
such as “anticipate,” “believe,” “plan,” “could,” “estimate,”
“expect,” “forecast,” “guidance,” “outlook,” “intend,” “may,”
“possible,” “potential,” “predict,” “project,” “propose” or other
similar words, phrases or expressions, or other variations of such
words. These forward-looking statements are subject to various
risks and uncertainties, many of which are outside of the Company’s
control. There can be no assurances that the Company will realize
these expectations or that these beliefs will prove correct, and
therefore investors and stakeholders should not place undue
reliance on such statements.
Factors that could cause actual results to differ materially
from those in the forward-looking statements include, among other
things, highly competitive office products market and failure to
differentiate the Company from other office supply resellers or
respond to decline in general office supplies sales or to shifting
consumer demands; competitive pressures on the Company’s sales and
pricing; the adverse effects of an unsolicited tender offer on our
business, operating results or financial condition; the risk that
the Company is unable to transform the business into a
service-driven, B2B platform that such a strategy will not result
in the benefits anticipated; the risk that the Company will not be
able to achieve its strategic plans, including the announced
separation of the B2B Operations and the sale of CompuCom, and the
high costs in connection with these transactions which may not be
recouped if these transactions are not consummated; the risk that
the Company may not be able to realize the anticipated benefits of
acquisitions due to unforeseen liabilities, future capital
expenditures, expenses, indebtedness and the unanticipated loss of
key customers or the inability to achieve expected revenues,
synergies, cost savings or financial performance; the risk that the
Company is unable to successfully maintain a relevant omni-channel
experience for its customers; the risk that the Company is unable
to execute the Maximize B2B Restructuring Plan successfully or that
such plan will not result in the benefits anticipated; the risk
that the Company will not be successful in maximizing the full
potential of its CompuCom Division; failure to effectively manage
the Company’s real estate portfolio; loss of business with
government entities, purchasing consortiums, and sole- or limited-
source distribution arrangements; failure to attract and retain
qualified personnel, including employees in stores, service
centers, distribution centers, field and corporate offices and
executive management, and the inability to keep supply of skills
and resources in balance with customer demand; failure to execute
effective advertising efforts and maintain the Company’s reputation
and brand at a high level; disruptions in computer systems,
including delivery of technology services; breach of information
technology systems affecting reputation, business partner and
customer relationships and operations and resulting in high costs
and lost revenue; unanticipated downturns in business relationships
with customers or terms with the suppliers, third-party vendors and
business partners; disruption of global sourcing activities,
evolving foreign trade policy (including tariffs imposed on certain
foreign made goods); exclusive Office Depot branded products are
subject to additional product, supply chain and legal risks;
product safety and quality concerns of manufacturers’ branded
products and services and Office Depot private branded products;
covenants in the credit facility; incurrence of significant
impairment charges; retained responsibility for liabilities of
acquired companies; fluctuation in quarterly operating results due
to seasonality of the Company’s business; changes in tax laws in
jurisdictions where the Company operates; increases in wage and
benefit costs and changes in labor regulations; changes in the
regulatory environment, legal compliance risks and violations of
the U.S. Foreign Corrupt Practices Act and other worldwide
anti-bribery laws; volatility in the Company’s common stock price;
changes in or the elimination of the payment of cash dividends on
Company common stock; macroeconomic conditions such as future
declines in business or consumer spending; increases in fuel and
other commodity prices and the cost of material, energy and other
production costs, or unexpected costs that cannot be recouped in
product pricing; unexpected claims, charges, litigation, dispute
resolutions or settlement expenses; catastrophic events, including
the impact of weather events on the Company’s business; the
discouragement of lawsuits by shareholders against the Company and
its directors and officers as a result of the exclusive forum
selection of the Court of Chancery, the federal district court for
the District of Delaware or other Delaware state courts by the
Company as the sole and exclusive forum for such lawsuits; and the
impact of the COVID-19 pandemic on the Company’s business,
including on the demand for its and our customers’ products and
services, on trade and transport restrictions and generally on our
ability to effectively manage the impacts of the COVID-19 pandemic
on our business operations. The foregoing list of factors is not
exhaustive. Investors and shareholders should carefully consider
the foregoing factors and the other risks and uncertainties
described in the Company’s Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K filed with
the U.S. Securities and Exchange Commission. The Company does not
assume any obligation to update or revise any forward-looking
statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210604005603/en/
Tim Perrott Investor Relations 561-438-4629
Timothy.Perrott@officedepot.com
Danny Jovic Media Relations 561-438-1594
Danny.Jovic@officedepot.com
Jeremy Fielding/ Ruth Pachman Kekst CNC
Jeremy.fielding@kekstcnc.com / ruth.pachman@kekstcnc.com
ODP (NASDAQ:ODP)
Historical Stock Chart
From Sep 2024 to Oct 2024
ODP (NASDAQ:ODP)
Historical Stock Chart
From Oct 2023 to Oct 2024