Lowe's To Acquire Majority Of Assets Of Orchard Supply Hardware Stores

(RTTNews) - Lowe's Companies Inc. (LOW) announced further progress in its plans to acquire the majority of assets of Orchard Supply Hardware Stores Corp. (OSHWQ.PK), including 72 stores, for about $205 million in cash, plus the assumption of payables owed to nearly all of Orchard's supplier partners, subject to Bankruptcy Court approval.

Lowe's said it has been advised by Orchard that no additional bids were received by the deadline of August 9, 2013. The transaction will be presented to the Bankruptcy Court for approval on August 20, 2013. Lowe's anticipates completing the acquisition by the end of August.

Lowe's stated that it plans to have Orchard operate as a separate, standalone business, retaining its brand under the leadership of Orchard's current management team. Lowe's plans to acquire the locations most complementary to its current strategy and store footprint.

In June 17, 2013, Lowe's had said it entered into a purchase agreement with Orchard that would serve as the "stalking-horse bid" in a Bankruptcy Court-supervised auction under Section 363 of the U.S. Bankruptcy Code. Interested bidders were required to file initial bids with the Court by August 9, 2013. Orchard initiated Chapter 11 proceedings on June 17, 2013 in the U.S. Bankruptcy Court for the District of Delaware.