Lowe's to Purchase Orchard Supply Hardware Assets for $205M

Lowe's Companies, Inc. 

, the world's second largest home improvement retailer, today announced it has entered into an asset purchase agreement with Orchard Supply Hardware

, under which Lowe's will acquire the majority of Orchard's assets for approximately $205 million in cash, plus the assumption of payables owed to nearly all of Orchard's supplier partners. Upon completion of the transaction, the acquisition will enable Lowe's to expand through a new store format and reach a new customer base in California with the addition of Orchard's smaller-format metro store locations. Lowe's plans to have Orchard operate as a separate, standalone business, retaining its brand under the leadership of Orchard's current management team. Based in San Jose, California and