Sears to spin off Orchard Supply
Orchard Supply Hardware has been through some big changes already this year. But here’s another — Sears Holdings said it plans to spin off its interest in the 89-store California chain.
OSH made a splash in March by announcing that former Home Depot merchandising executive Mark Baker would take over as CEO. A second splash came a few weeks later when OSH hired Steve Mahurin — with True Value and Home Depot on his resume — to be senior merchant.
Currently, Sears owns 80% of OSH. The rest of the California hardware store company is owned by Ares Corporate Opportunities Fund. As OSH becomes a stand-alone company, its shares will be distributed to Sears shareholders.
Orchard Supply was founded in 1931, and acquired by Sears Roebuck in 1996. It is based in San Jose and posted $660.7 million in sales in 2010, with a profit of $8.7 million.
Sears Holdings said the spinoff would allow “financial, operational and managerial benefits to both” Sears and OSH.