Lowe's Orchard Buyout Plans Advance
Lowe's is now one crucial step closer to realizing its ambition to acquire Orchard Supply Hardware. In separate press releases, the companies revealed that the latter had received no additional bids as of the Friday afternoon deadline, leaving Lowe's as the only bidder. This clears the way for Lowe's to purchase the majority of Orchard's assets, most notably 72 stores operating under that brand. The offered price is $205 million in cash. Lowe's will also assume payables owed to nearly all of Orchard's suppliers.
Lowe's offer will be presented for approval on August 20 to the bankruptcy court in Delaware, the entity that is overseeing Orchard's restructuring process.
In its press release on the latest developments, Lowe's said that it "plans to have Orchard operate as a separate, stand-alone business, retaining its brand under the leadership of Orchard's current management team."
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