Sears to spin off Orchard Supply
Hoffman Estates, Ill.-based Sears Holdings Corp. said it plans to spin off its interest in Orchard Supply Hardware Stores, an 89-store chain that operates in California.
Orchard Supply Hardware -- also known as OSH -- recently named Mark Baker, a former top merchant at The Home Depot, as its CEO. OSH is based in San Jose and posted $660.7 million in sales in 2010, with a profit of $8.7 million.
Provided the deal goes through, it is expected that OSH will be traded on Nasdaq as a stand-alone company. Currently, Sears owns 80% of OSH. The rest of the California hardware store company is owned by Ares Corporate Opportunities Fund.
Orchard Supply was founded in 1931, and acquired by Sears Roebuck in 1996.
When he took over as CEO in March, Baker described OSH as "an exceptional retailer with a unique value proposition comprised of service, selection and convenience."