Lowe’s completed acquisition of Orchard Supply Hardware’s majority of assets for approximately $205 million. Orchard will continue to operate as a separate business. Goldman Sachs acted as financial advisor.
Great American Group is managing closing sales at nine additional Orchard locations. Liquidation sales are already underway at eight other OSH locations throughout California.
The Wall Street Journal reported that a competing bid from Orchard Supply Hardware’s lenders helped push Lowe’s offer for the hardware chain’s assets to $205 million from $190 million.
Lowe’s has entered into an asset purchase agreement with Orchard Supply Hardware, which filed Chapter 11, in a transaction expected to be consummated under a Section 363 subject to an auction and court approval.
Orchard Supply Hardware said based on discussions with the company’s term loan holders, the previous date to reach an agreement with respect to a transaction to address the company’s capital structure has been extended to June 30, 2013.
The Wall Street Journal reported that Orchard Supply Hardware Stores has hired restructuring attorneys at DLA Piper and financial advisor FTI consulting as it readies for a term loan restructuring deadline of May 1, 2013.