Lowe's Orchard Buyout Approved
Lowe's attempts to acquire Orchard Supply Hardware have ended in success. The company announced that it has received approval from the bankruptcy court in Delaware overseeing Orchard's restructuring process to buy the key assets of its target. Seventy-two Orchard stores will soon be the property of Lowe's, for which it will pay roughly $205 million in cash and assume the payables owed to nearly all of Orchard's suppliers.
Lowe's said it expects the transaction to close by the end of this month. It also reiterated that it intends to operate Orchard as a separate, stand-alone business unit. This will not be headed by Orchard President and CEO Mark Baker, who will leave his position. He is to be replaced by Lowe's executive Richard Maltsbarger.
Earlier this month, Lowe's was left as the only suitor for the company following the expiration of a bidding deadline.
In the press release announcing the news, Lowe's said that its new asset will help the firm "expand its presence and reach a new customer base in California, where Lowe's is currently underpenetrated."
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