Orchard Supply to Proceed with Lowe’s Acquisition
Orchard Supply Hardware Stores announced that, after completing a court-approved marketing process, it intends to proceed toward completing the previously announced acquisition agreement with Lowe’s Companies, pending approval by the U.S. Bankruptcy Court for the District of Delaware.
Lowe’s was named on June 17, 2013, as the stalking horse bidder in Orchard’s Court-supervised auction process under Section 363 of the Bankruptcy Code. In order to be considered under the bidding procedures approved by the court, any competing bidders would have needed to submit qualifying bids before 4 p.m. Eastern Time on Friday, August 9, 2013.
Orchard engaged in discussions with a number of potential buyers but did not receive any qualifying bids in advance of this deadline. Accordingly, the auction previously scheduled for August 14, 2013 will not be held. Orchard will now move forward to have the sale to Lowe’s approved by the court on August 20, 2013, and completed by the end of August.
As announced on June 17, 2013, Lowe’s will acquire the majority of Orchard’s assets for $205 million in cash, plus the assumption of payables owed to nearly all of Orchard’s supplier partners. Under the terms of the agreement, Orchard will operate as a separate, standalone business at the completion of the sale process, retaining its brand, management team and associates
“We are thrilled to be moving toward completing the sale to Lowe’s and we believe this agreement is the best outcome for our associates, customers, suppliers, creditors and other business partners,” said Mark Baker, Orchard president and chief executive officer.
Previously on abfjournal: Orchard Supply Gets Court OK for Wells Fargo DIP Financing, July 17, 2013