(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 Wednesday.
The move, which ODP said will allow for more targeted investment, comes as Sycamore Partners-backed Staples continues to pursue an acquisition. The rival office-supply chain had made an offer earlier this year, which ODP said wasn’t likely to overcome regulatory hurdles. Still, the Office Depot parent said it was open to reworking the terms of a deal.
Shares of ODP climbed 4.5% as of 7:15 a.m. before regular trading in New York.
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