Lowe’s to Complete Acquisition of California Home Improvement Stores

Housing

Published: August 12, 2013 8:45 am

Last Updated: April 28, 2020 12:50 am

Lowe’s Companies (NYSE: LOW) announced this morning that Orchard Supply Hardware Stores (OSHWQ) did not receive a higher bid than the $205 million Lowe’s offered in June and that the company will now seek approval from the bankruptcy court for its offer for Orchard. Lowe’s expects to complete the transaction by the end of this month.

Lowe’s will acquire 72 of Orchard’s 91 stores in California in exchange for $205 million in cash plus the assumption of accounts payable to nearly all of Orchard’s suppliers.

Orchard Supply came public in January 2012, as a spin-off from Sears Holdings Corp. (NASDAQ: SHLD). The initial public offering price was $25 a share. The company had about 6.03 million shares outstanding. Accounts payable at the end of February totaled $39.66 million, and Orchard had $262.31 million in short/current long-term debt. The company’s long-term debt totaled $46.95 million. Orchard filed for bankruptcy protection on the same day that Lowe’s made its offer to acquire the company.

Lowe’s CEO said:

Strategically, the transaction will provide Lowe’s with an attractive opportunity to increase our store footprint in California, where we are currently underpenetrated, through a neighborhood store format that is complementary to our strengths in big-box retail. Orchard’s hardware and garden stores have a loyal customer base and are situated in high-density, prime locations that are difficult for larger format retailers to enter. We see significant potential for Orchard as a standalone business within Lowe’s portfolio, and we look forward to the opportunity to participate more fully in California’s economic recovery.

Shares of Lowe’s stock are inactive in premarket trading and closed at $45.68 on Friday, in a 52-week range of $25.97 to $46.25.

The Average American Has No Idea How Much Money You Can Make Today ^(Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps