ODP has two business lines – Commercial and Retail. Commercial covers large corporate office delivery and accounts for ~50% of revenues. The other half comes from Retail, serviced by a national network of 1,400 stores. Following the merger of ODP and Office Max in 2013 (ranked 2nd and 3rd by market share respectively) this network expanded significantly, with the trend towards industry consolidation reaching its zenith in February 2015 as Staples attempted to buy ODP. The deal appeared fate accompli given structural sales declines, particularly within the retail channel. However, in December 2015, the Federal Trade Commission (FTC) blocked the deal due to excessive market power. A subsequent court challenge failed in May 2016 and all bets were off. On the day, ODP and Staples share prices collapsed 40% and 19% respectively. We sensed a buying opportunity with the market underestimating some inherent resilience against online competition.