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Lowe’s completed its previously announced acquisition of the majority of assets of Orchard Supply Hardware, including 72 Orchard stores, for approximately $205 million in cash, plus the assumption of payables owed to nearly all of Orchard’s supplier partners.
The acquisition expands Lowe’s presence in California through the addition of Orchard’s smaller-format neighborhood stores.
“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,” said Richard D. Maltsbarger, Lowe’s business development executive and president of Orchard. “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.”
Orchard will continue to operate as a separate, standalone business, retaining its brand and its San Jose headquarters.
Orchard’s smaller-format neighborhood stores offer a product selection focused on paint, repair and backyard categories in approximately 36,000 square feet of selling space, compared to 113,000 square feet of selling space for an average Lowe’s home improvement store.
