Mooresville, N.C. -- The Aug. 9 deadline for additional bids on the proposed purchase of Orchard Supply Hardware by Lowe’s Companies Inc. has passed with no activity. This means Lowe’s can move ahead with plans to acquire the majority of assets of Orchard Supply Hardware, including 72 stores, for approximately $205 million in cash, plus the assumption of payables owed to nearly all of Orchard’s supplier partners, first announced June 17.
The transaction will be presented to the Bankruptcy Court for approval on Aug. 20, and Lowe’s anticipates completing the acquisition by the end of August.
Lowe’s plans to have Orchard operate as a separate, standalone business, retaining its brand under the leadership of Orchard’s current management team. Lowe’s plans to acquire the locations most complementary to its current strategy and store footprint.
“We are very pleased to be moving forward with the acquisition process,” said Robert A. Niblock, chairman, president and CEO of Lowe’s. “Strategically, the transaction will provide Lowe’s with an attractive opportunity to increase our store footprint in California, where we are currently underpenetrated, through a neighborhood store format that is complementary to our strengths in big-box retail. Orchard’s hardware and garden stores have a loyal customer base and are situated in high-density, prime locations that are difficult for larger format retailers to enter.”
Niblock added that the company sees significant potential for Orchard as a standalone business within Lowe’s portfolio.