WASHINGTON (dpa-AFX) - The ODP Corp. (ODP), which is in the process of splitting into two independent, publicly-traded companies, announced Monday the selection of the Chief Executive Officers (CEO) and company names for each of the two companies, which would become effective upon the completion of the spin-off.
In May 2021, ODP Board of Directors unanimously approved a plan to separate ODP into two independent, publicly-traded companies by means of a tax-free spin-off to ODP shareholders. The separation of ODP's consumer business from its B2B operations is expected to be completed in the first half of 2022.
The two entities to be formed through the separation are The ODP Corp. and Office Depot. Gerry Smith will continue to serve as CEO of The ODP Corp. following the separation. Meanwhile, Kevin Moffitt, currently EVP, Chief Retail Officer of The ODP Corp., will be appointed CEO of Office Depot upon completion of the spin-off.
The separation is expected to allow ODP and Office Depot to pursue unique market opportunities and growth strategies, improving the value for shareholders and stakeholders.
The Company anticipates that the separated companies will be capitalized to provide the financial flexibility to take advantage of future strategic opportunities.
The transaction is subject to certain conditions, including final approval by ODP's Board of Directors. However, the separation will not require a vote of ODP shareholders.
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