Lowe's Companies Inc. is the second biggest home improvement retailer in the world. Today, the home retailer announced the completion of its acquisition deal with Orchard Supply Hardware. The deal with Orchard was for the acquisition of the hardware supplier's majority assets. The acquisition also included 72 Orchard stores. The acquisition was valued at USD205 million in cash and ownership of debt payables to Orchard's supplier partners.
Orchard would retain its operation as a separate business. It would also retain its brand and its headquarters in San Jose. The acquisition would expand the presence of Lowe's in California. This would be through the addition of Orchard's neighborhood stores.
According to Orchard's President Richard D. Maltsbarger, "We look forward to a smooth transition and to continuing the successful repositioning strategy already underway to take full advantage of Orchard's growth potential. Orchard is well-positioned within the California marketplace, with a strong brand, loyal customers and significant opportunity to benefit from the economic recovery. We are confident Orchard has a bright future as part of Lowe's."
Goldman Sachs Group acted as Lowe's financial advisor. Meanwhile Hunton & Williams LLP acted as the legal advisor for the deal.
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