USR Parent Offers To Acquire ODP For $40 Per Share In Cash – Quick Facts

USR Parent, Inc. or Staples said Monday it has sent a letter to the board of directors of ODP Corp. (ODP), outlining a proposal to acquire all of the issued and outstanding common stock of ODP for $40.00 per share in cash. Shares of ODP are gaining more than 9 percent in pre-market activity.

ODP is a provider of business services, products and technology solutions for small, medium and enterprise businesses.

“Staples believes that its all-cash transaction is a compelling value proposition for ODP’s stockholders that offers a high degree of certainty and is superior to the intrinsic, standalone value of ODP,” Staples said in the letter.

Further, Staples said it may increase its proposed valuation for logical strategic divestitures that ODP may execute to unlock value, such as the sale of its CompuCom business, or if ODP conducts a comprehensive sale process for its U.S. commercial business unit.

Staples noted that certain of its affiliates own about 4.9 percent of ODP’s common stock, and it is fully committed to completing the proposed transaction.

The company added it is prepared to cooperate with ODP and its board of directors to sign a reasonable negotiated merger agreement.

“Our intention is to commence a public, all-cash tender offer for 100% of ODP’s outstanding shares of common stock in March 2021 in the event we cannot reach a negotiated agreement with ODP,” Staples said.

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