NEW YORK (TheStreet) -- Shares of Office Depot (ODP) - Get Report were advancing in early-afternoon trading on Friday as the company said it intends to sell its European business operations to Aurelius.
The Boca Raton, FL-based office supplies company began a process to explore strategic alternatives for its European business earlier this year.
The transaction is structured as an equity sale, for nominal consideration, with Aurelius acquiring the company's European business with its assets and liabilities, according to an SEC filing.
"The sale of our European business will allow us to streamline operations and focus our resources on markets that will provide the best opportunity to implement our recently announced three year strategic plan," Office Depot CEO Roland Smith said in a statement.
Aurelius specializes in investing in companies and corporate spin-offs.
The transaction has been approved by Office Depot's board, but is subject to regulatory approvals. The deal is expected to close by the end of 2016.
The annual revenue for Office Depot's European business is about 2 billion euros.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels.
But the team also finds weaknesses including poor profit margins and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ODP