Wednesday August 21st, 2013 - 9:47AM
Lowe’s Companies, Inc. has announced that its acquisition of the majority of assets of Orchard Supply Hardware has been approved by the U.S. Bankruptcy Court for the District of Delaware. Orchard initiated Chapter 11 proceedings this past June. Under the terms of the transaction, Lowe’s will acquire 72 Orchard stores for approximately $205 million in cash, plus the assumption of payables owed to nearly all of Orchard’s supplier partners. Lowe’s expects to close the transaction by the end of August.
Once completed, the acquisition will enable Lowe’s to expand its presence and reach a new customer base in California, where Lowe’s is currently underpenetrated, it noted. Lowe’s said Orchard will operate as a separate, standalone business, retaining its brand and its San Jose headquarters.
Lowe’s also announced that upon closing, Richard Maltsbarger, Lowe’s executive who led the team to acquire Orchard, will become president of Orchard. Orchard’s current president and CEO Mark Baker has informed Lowe’s of his decision to accept a position as president and CEO of the Aircraft Owners and Pilots Association following the closing. Maltsbarger will work closely with Orchard’s team of executives led by Steven Mahurin, chief retail officer, and Chris Newman, chief financial officer and head of development. Upon closing, Mahurin will be responsible for Orchard’s merchandising, marketing and store operations, and Newman will have responsibility for finance, information technology and ecommerce, supply chain and loss prevention. Maltsbarger will continue to report to Lowe’s chairman, president and CEO, Robert A. Niblock.