Lowe’s Acquires Home Improvement Chain Orchard Supply

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 and shares closed on Friday at $1.88. The company has 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.

Last week, Orchard’s largest shareholder, Fairholme Capital, sold its entire 12.5% stake in the company, and there was a report that it had hired a firm to assist with a prepackaged bankruptcy plan. Lowe’s saved the day, but the cost to Orchard’s shareholders has been steep.

Shares of Orchard Supply are up 11.7%, at $2.10 in a 52-week range of $1.85 to $20.41. Shares of Lowe’s are up about 1.1%, at $41.63 in a 52-week range of $24.76 to $43.84.