Staples’ year-long pursuit of Office Depot may be inching closer to becoming a reality.
ODP Corp., parent of Office Depot, said its board has approved a plan to split the company into two publicly traded companies. ODP said the split would allow the two companies to focus on their respective areas of expertise while also unlocking shareholder value.
Under the plan, ODP will retain its retail consumer and small-business products and services division, which includes some 1,100 Office Depot and OfficeMax stores and e-commerce site. The transaction, expected to be completed in the first half of 2022, will occur through a distribution of shares of the new company as a tax-free dividend to ODP’s shareholders.
“We believe creating two focused, pure-play companies will unlock significant opportunities by improving our ability to meet the needs of our customers, while better matching assets and investment profiles of both companies to generate greater value for our shareholders,” said Gerry Smith, CEO, ODP Corp. “Maximising the strategic focus and financial flexibility of each entity and aligning their go-to-market strategies and capital investments will enable us to meet customer demand.”
