The ODP Corporation Embarks on a New 10-Year, $1.5B Transformative Partnership with Nationally Recognized Strategic Reseller

Rhea-AI Summary

The ODP (NASDAQ:ODP) has announced a transformative $1.5 billion, 10-year partnership with a major strategic reseller organization. The collaboration aims to enhance procurement efficiency and deliver customized customer experiences by combining the reseller's expertise in e-commerce solutions with ODP's extensive fulfillment centers and delivery network. The partnership will focus on providing office, furniture, print, promotional, and facility resource solutions to large multi-site companies, leveraging ODP's comprehensive product offerings and award-winning e-commerce platform.

Positive

• Secured a major $1.5 billion, 10-year partnership agreement
• Expansion of distribution network and customer base through strategic reseller
• Leveraging existing infrastructure and e-commerce platform for additional revenue

Negative

• None.

Insights

Financial Analyst

This $1.5 billion decade-long partnership represents a significant revenue stream for ODP, potentially contributing up to $150 million annually. For a company with a market cap of about $1 billion, this deal could substantially impact their financial outlook. The strategic value lies in leveraging ODP's existing infrastructure - fulfillment centers, delivery network and e-commerce platform - without requiring major capital investments.

The partnership model demonstrates a smart pivot toward B2B solutions, potentially improving operational efficiency and reducing customer acquisition costs. While the exact revenue recognition schedule isn't specified, this long-term agreement provides stable, predictable income streams and strengthens ODP's position in the competitive office solutions market. The deal's size relative to ODP's market cap suggests it could meaningfully impact profitability and shareholder value.

Market Research Analyst

This strategic partnership positions ODP to capture a larger share of the B2B office solutions market through a capital-light expansion strategy. By partnering with an established reseller, ODP can extend its market reach while maintaining operational efficiency. The deal structure leverages ODP's core competencies in distribution and e-commerce while accessing new customer segments through the partner's expertise in custom solutions for multi-site companies.

The partnership model reflects broader industry trends toward digital transformation and integrated procurement solutions. This approach could help ODP compete more effectively against industry giants like Staples and Amazon Business, particularly in the large enterprise segment. The long-term nature of the agreement provides a competitive moat and stable foundation for future growth initiatives.

Leading workplace solutions provider joins forces with strategic reseller partner to enhance procurement efficiency and deliver a curated customer experience

BOCA RATON, Fla.--(BUSINESS WIRE)-- The ODP Corporation (NASDAQ:ODP) (“ODP,” or the “Company”), a leading provider of products, services and technology solutions to businesses and consumers, today announced a partnership with a large, growing strategic reseller organization, offering quality office, furniture, print, promotional and facility resource solutions to large multi-site companies. This partnership, worth up to $1.5 billion spanning a 10-year period, will leverage the reseller provider’s expertise in creating custom, results-driven e-commerce solutions and the Company’s extensive fulfillment centers and delivery network.

“This collaboration enables a leader in reseller services to leverage our comprehensive product and service offerings, national distribution and award-winning e-commerce platform to service their customers,” said David Centrella, EVP of The ODP Corporation and President of ODP Business Solutions. “This partnership reflects our commitment to providing solutions that address unique business needs.”

“This partnership underscores ODP’s commitment to providing value-added solutions that will help businesses and vendors thrive in today’s competitive landscape,” said Nisha Brown, VP of Marketing & Product Management at ODP Business Solutions. “We’re excited about the opportunities this brings to our customers and the broader business community.”

To learn more about The ODP Corporation, visit theodpcorp.com.

About The ODP Corporation
The ODP Corporation (NASDAQ:ODP) is a leading provider of products and services through an integrated business-to-business (B2B) distribution platform and omnichannel presence, which includes world-class supply chain and distribution operations, dedicated sales professionals, online presence and a network of Office Depot and OfficeMax retail stores. Through its operating companies Office Depot, LLC; ODP Business Solutions, LLC; and Veyer, LLC, The ODP Corporation empowers every business, professional, and consumer to achieve more every day. For more information, visit theodpcorp.com.

ODP and ODP Business Solutions are trademarks of ODP Business Solutions, LLC. Office Depot is a trademark of The Office Club, LLC. OfficeMax is a trademark of OMX, Inc. Veyer is a trademark of Veyer, LLC. ©2024 Office Depot, LLC. All rights reserved. Any other product or company names mentioned herein are the trademarks of their respective owners.

FORWARD LOOKING STATEMENTS – THE ODP CORPORATION

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, or state other information relating to, among other things, The ODP Corporation (“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,” “expectations”, “outlook,” “intend,” “may,” “possible,” “potential,” “predict,” “project,” “propose” “aim” 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.

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/20241106480352/en/

Jennifer Robins

Media Relations

Jennifer.Robins@theodpcorp.com

Tim Perrott

Investor Relations

Tim.Perrott@theodpcorp.com

Source: The ODP Corporation

FAQ

What is the value and duration of ODP's new strategic reseller partnership?

The ODP 's new strategic reseller partnership is valued at up to $1.5 billion and spans a 10-year period.

What services will be offered through ODP's new strategic partnership?

The partnership will offer office, furniture, print, promotional, and facility resource solutions to large multi-site companies, utilizing ODP's fulfillment centers and delivery network.

How will ODP (NASDAQ:ODP) implement this new strategic partnership?

ODP will leverage the reseller's expertise in custom e-commerce solutions combined with ODP's fulfillment centers, delivery network, and award-winning e-commerce platform.