RTTNews | May 5, 2021 07:42AM EDT

07:42 Wednesday, May 5, 2021 (RTTNews.com) - Shares of The ODP Corporation (ODP) are climbing more than 4% in pre market on Wednesday after the company announced its plans to separate into two independent, publicly traded companies.

ODP will provide retail consumer and small business products and services through Office Depot and OfficeMax.

The "NewCo" will be a B2B solutions provider including ODP's Business Solutions Division contract business, regional office supply distribution businesses, and Grand & Toy. NewCo will also own the Company's newly formed B2B digital platform technology business, including BuyerQuest, as well as its sourcing, supply chain and logistics assets.

The separation, which is expected to be completed during the first half of 2022, is intended to occur through a distribution of shares of NewCo as a tax-free dividend to ODP's shareholders, after which ODP shareholders will own 100% of the equity in both the companies.

Separately, ODP reported first quarter earnings of $53 million or $0.95 per share compared with $45 million or $0.84 per share in the same quarter a year ago.

Excluding items, adjusted earnings were $1.21 per share, that beat the average estimate of analysts polled by Thomson Reuters at $0.72 per share.

Sales for the quarter decreased to $2.366 billion from $2.725 billion last year. The consensus estimate was for $2.41 billion.

ODP closed Tuesday's trade at $42.47, down 0.91%. The stock is currently at $44.41.

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