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Bloomberg
The parent of the Office Depot retail chain plans to split into two publicly traded companies, reshaping the company as rival Staples pursues an
acquisition.
ODP Corp said it would retain its retail consumer and small-business products and services, while separating its Business Solutions Division contract unit and independent regional office-supply distribution operations. 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, according to a statement.
The transaction will aid the company in “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,†Gerry Smith, chief executive officer of ODP, said in the statement.
The move, which ODP said will allow for more targeted
investment, comes as Sycamore Partners-backed Staples continues to pursue an acquisition.