The U.S. Bankruptcy Court for the District of Delaware recently approved Lowe’s acquisition of the majority of assets of Orchard Supply Hardware.
Upon the transaction’s closing, Richard D. Maltsbarger, a Lowe’s executive who led the team to acquire Orchard, will become Orchard’s president. Orchard’s current President and CEO Mark Baker accepted a position as President and CEO of the Aircraft Owners and Pilots Association following the closing.
Maltsbarger will work closely with Orchard’s executive team led by Steven L. Mahurin, chief retail officer, and Chris D. Newman, chief financial officer and head of development. Upon closing, Mahurin will be responsible for Orchard’s merchandising, marketing and store operations, and Newman will have responsibility for finance, information technology and ecommerce, supply chain and loss prevention.
Maltsbarger will continue to report to Lowe’s Chairman, President and CEO, Robert A. Niblock.
“We are confident that Orchard’s talented management team, led by Richard Maltsbarger, will continue to execute their successful repositioning strategy and deliver long-term profitable growth,” Niblock said.
Under the terms of the transaction, Lowe’s will acquire 72 Orchard stores for approximately $205 million in cash, plus the assumption of payables owed to nearly all of Orchard’s supplier partners. Lowe’s expects to close the transaction by the end of this month.
Once completed, the acquisition will enable Lowe’s to expand its presence and reach a new customer base in California; Lowe’s currently operates 110 stores there.
Lowe’s said Orchard will operate as a separate, standalone business, retaining its brand and its San Jose headquarters.