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."

The article Lowe's Orchard Buyout Plans Advance originally appeared on Fool.com.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Lowe's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.