Orchard, Lowe’s Sale Receives Court Approval
Orchard Supply Hardware Stores announced that the United States Bankruptcy Court for the District of Delaware approved the acquisition of a majority of Orchard’s assets by Lowe’s Companies. The companies now expect to complete the transaction by the end of August. Orchard will operate as a separate, standalone business with its own brand and a continued commitment to its neighborhood store format, which uniquely caters to the needs of local consumers.
“The court’s approval underscores the belief of Orchard’s board and management team that the acquisition agreement with Lowe’s is in the best interest of Orchard stakeholders and puts the company in a terrific position to continue the repositioning and growth strategy we have developed over the past two years,” said Mark Baker, Orchard president and CEO. “With Lowe’s support, the team will be better positioned to improve Orchard’s infrastructure, further enhance the company’s merchandising strategy and grow the business with new neighborhood format stores and remodels. The management team and I are confident that Orchard has a very bright future ahead.”
At the close of the transaction, Lowe’s will acquire the majority of Orchard’s assets for approximately $205 million in cash, plus the assumption of payables owed to nearly all of Orchard’s supplier partners. Orchard and Lowe’s first announced the agreement on June 17, 2013.
Orchard also announced that Baker accepted a position as president and chief executive officer of the Aircraft Owners and Pilots Association and, accordingly, will step down as Orchard’s president and chief executive officer and as a member of the company’s board of directors following the transaction. Baker will be available to advise Orchard as a consultant for several months.
Richard D. Maltsbarger, Lowe’s business development executive who led the acquisition team, will become president of Orchard. Maltsbarger has served in various roles at Lowe’s since 2004 and brings more than 15 years of experience in strategic planning, consumer and market research, quantitative analytics, marketing and economic analysis to Orchard. He will be working closely with Orchard’s existing leadership team to lead Orchard’s repositioning and growth strategy.
To read the full press release, click here.
Previously on abfjournal: Orchard Supply to Proceed with Lowe’s Acquisition, August 12, 2013