September 3, 2013 > Lowe's completes Orchard Supply acquisition
Lowe's completes Orchard Supply acquisition
Submitted By AP Wire Service
MOORESVILLE, N.C. (AP), Aug 30 - Home improvement retailer Lowe's said it has completed its acquisition of 72 stores from Orchard Supply Hardware Stores for approximately $205 million.
Orchard is a Sears spinoff that filed for bankruptcy in June. That same month the San Jose, Calif., company received the offer from Lowe's Cos. The ``stalking horse'' bid also included the assumption of debts owed to nearly all of Orchard's suppliers.
The deal allows Lowe's to expand in California and reach into urban areas. Because Orchard's has smaller stores, it can operate in areas of dense population.
Orchard will continue to run as a separate, stand-alone company.
Last week Lowe's reported that its second-quarter results topped Wall Street's expectations and the chain raised its full-year earnings and revenue forecasts.
Shares of Lowe's, based in Mooresville, N.C., shed 55 cents, or 1.2 percent, to $45.87 in Friday morning trading. Its shares are still trading near their 52-week high of $47.51 reached late last week.