Aug. 20, 2013, 5:00 PM
- Lowe's (LOW) purchase of rival Orchard Supply Hardware's assets has been cleared by a U.S. bankruptcy court. Lowe's is paying $205M in cash and assuming Orchard's payables to suppliers.
- Orchard CEO Mark Baker is leaving to head the Aircraft Owners & Pilots Association. Lowe's exec Richard Maltsbarger will be responsible for the division going forward.
- Orchard will remain "a separate, standalone business," based out of San Jose. Lowe's touts the deal's ability to increase its presence in CA, where it considers itself "underpenetrated."
- More on Lowe's/Orchard
Jun. 20, 2013, 11:11 AMCanadian firm Rona sells its plumbing, heating, ventilation and air conditioning business to Emco Corporation for C$215M ($207.6M). Though the deal will give the company a little breathing room with its cash position, the retailer's 800 stores in Canada are still in limbo with Lowe's (LOW -2.2%) not too shy about its interest to expand into the region. | Comment!
Jun. 17, 2013, 3:47 PMShares of Orchard Supply (OSH +12.7%) are higher today after announcing earlier it would voluntarily file for bankruptcy in an effort to sell itself to Lowe's (LOW). The stock initially soared over 90% on news that the deal would be worth around $205M, or approximately $34.17 per share, a massive premium to Friday's close of $1.88. However, details in the press release showed the numbers are a little more convoluted than previously thought. LOW will assume the debt owed to nearly all of OSH's supplier partners, which means the actual per share value of the deal is contingent on how much debt gets wiped out in bankruptcy court. | Comment!
Jun. 17, 2013, 6:37 AM
Aug. 2, 2012, 9:20 AMLowe's (LOW) doesn't raise its previous offer for Canadian home improvement retailer Rona, but creates a microsite to help trumpet its bid to shareholders. The current scorecard on the proposed deal: Institutional investors back the Lowe's-Rona merger, the Quebec government opposes it. LOW -0.3% premarket. | Comment!
Dec. 29, 2011, 10:22 AM
Jun. 15, 2011, 1:53 PMLowe's (LOW -2.7%) has lagged Home Depot (HD -2.2%) in same-stores sales for eight straight quarters, and has been woefully mismanaged since 2007. But Lowe’s has lots of valuable assets and owns 89% of its stores, making it an attractive takeover candidate, Wall Street Strategies says. Are you watching, Bill Ackman (I, II, III)? | Comment!
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