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Lowe’s said it made progress toward acquiring the majority of assets of San Jose, Calif.-based Orchard Supply Hardware, including 72 stores.
With no other bids on the table, Lowe’s offer of $205 million in cash plus the assumption of payables owed to nearly all of Orchard’s supplier partners will be presented to the bankruptcy court for approval on Aug. 20.
Lowe’s said 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.
Once completed, the acquisition will enable Lowe’s to expand its presence in California and reach a new customer base through the addition of Orchard’s smaller-format stores in densely populated areas.
Orchard’s stores measure about 36,000 sq. ft. of selling space, compared with 113,000 sq. ft. of selling space for an average Lowe’s home improvement store. Lowe’s currently operates 110 stores in California.
“We are very pleased to