Lloyd's plans to expand its presence in California about $ 205 million cash acquisition of Orchard Supply Hardware Stores Sears peel.
Orchard Supply last Monday filed a voluntary Chapter 11 bankruptcy petition, so, Lowe's offer will become a "stalking horse" bid auction orchard assets. This bid is set on the floor of the auction process, allowing competitors to make a better offer.
California is a key market because it has been the home improvement retailer recently strong market. In its most recent earnings report Lowe's reported net income increased by 3%, but less than expected, a rainy spring and cool injury. However, larger rival Home Depot, a greater presence in California, reported better than expected results.
"This deal is a Lloyd's current Home Depot (Home Depot) in major metro markets across the United States has a relatively easy deficit," financial services firm Janney Capital Markets analyst David Strasser said. "This acquisition will contribute immediately in California, and the possibility of creating a strategy other key metro markets."
Lowe's bid must live auction, obtain the approval of the bankruptcy court. The companies expect the deal to close in about three months.
Orchard Supply of the United States Bankruptcy Court for the District of Delaware bankruptcy petition.
Boswell, based on NC-Lowe's dissatisfaction, the company said on Monday it would acquire at least 60 orchards in 91 stores and alternative bids must be at least $ 12 million on top of Lowe's offer. Lloyd will also assume responsibility for the orchard almost all vendors arrears.
Orchard store less than Lowe's location, sales and Lowe's 113,000 square feet of space compared to an area of ??approximately 36,000 square feet. San Jose, California, the company was split Sears Holdings Corporation in January 2012, and its location is in a densely populated California market.
Lloyd's has been running in California's 110 stores. It plans to Orchard as a separate, stand-alone operations, maintaining orchards brand. Lloyd's Chairman and CEO Robert · A · Niblock said in a statement, orchard business has potential, but has been saddled with high debt.
"Strategy, this acquisition will provide immediate access to high density orchards in California, Lowe's currently underpenetrated an attractive market, prime location, will allow us to participate more fully in California's economic recovery, Niblock said. "
Lowe's shares rose 21 cents to close at $ 41.37, close to the 52-week stock range between $ 24.76 $ 43.84 high-end. The company's share price has risen by 16%, so in 2013.
 



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