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The ODP Corporation Enters Into Definitive Agreement for a Sale and Partial Leaseback of Its Corporate Headquarters
Rhea-AI Impact
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Rhea-AI Sentiment
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Rhea-AI Summary
The ODP Corporation (NASDAQ:ODP), a provider of business services and technology solutions, announced a definitive agreement for the sale and partial leaseback of its Boca Raton headquarters. Subject to closing conditions, the company plans to lease part of the building for at least two more years. This move aims to enhance their balance sheet and lower operating costs, according to CEO Gerry Smith and CFO Anthony Scaglione. The transaction is expected to close by year-end 2022.
Positive
Expected benefits from lower annual operating costs.
Enhances balance sheet flexibility.
Negative
None.
BOCA RATON, Fla.--(BUSINESS WIRE)--
The ODP Corporation (“ODP” or the “Company”) (NASDAQ:ODP), a leading provider of business services, products and technology solutions to businesses and consumers through an integrated business-to-business (B2B) distribution platform and omnichannel presence, today announced that, subject to certain closing conditions, it has reached a definitive agreement for a sale and partial leaseback of its Boca Raton-based corporate headquarters.
Upon completion of a sale, The ODP Corporation expects to lease a portion of the building’s office space from the new owner and to continue to occupy it as the company’s headquarters for a minimum of two years.
“I’m excited about this opportunity and our commitment to maintaining Boca Raton as our headquarters and base of operations while continuing to embrace our low-cost flexible business model,” said Gerry Smith, chief executive officer for The ODP Corporation. “This is another example of how we are committed to leveraging our assets in the best way possible, enhancing our balance sheet and identifying smart ways to drive The ODP Corporation’s long-term growth and success.”
“This transaction provides us with greater flexibility and lowers our annual operating costs,” said Anthony Scaglione, chief financial officer of The ODP Corporation. “Going forward, we remain committed to utilizing the strength of our balance sheet and business model to further improve asset utilization and deliver returns to shareholders.”
Upon closing, which is expected by year-end 2022, the Company will provide additional details of the transaction.
About The ODP Corporation
The ODP Corporation (NASDAQ:ODP) is a leading provider of business services, products and technology solutions to businesses and consumers 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 approximately 1,000 stores. Through its operating companies Office Depot, LLC; ODP Business Solutions, LLC; Veyer, LLC; Varis, LLC; and Grand and Toy, Ltd.; The ODP Corporation offers its customers the tools, resources and capabilities they need to work successfully, responsibly and sustainably in an ever-evolving work landscape. For more information, visit news.theodpcorp.com and investor.theodpcorp.com.
What is The ODP Corporation's latest announcement regarding its headquarters?
The ODP Corporation announced a sale and partial leaseback of its Boca Raton headquarters while planning to continue leasing part of the office space for at least two years.
How will the sale of ODP's headquarters affect its financial position?
The sale is expected to enhance ODP's balance sheet and lower its annual operating costs.
When is the expected closing date for ODP's headquarters sale?
The closing of the headquarters sale is expected by year-end 2022.
Who are the key executives discussing the headquarters sale at ODP?
CEO Gerry Smith and CFO Anthony Scaglione discussed the strategic benefits of the headquarters sale.
