Sears Holdings Corp. (Hoffman Estates, Ill.) is spinning off the Orchard Supply Hardware Stores Corp. into a separate, publicly-traded company. Sears acquired the California-based specialty retailer in 1996.
Sears said that the spin-off would be effected through a pro rata distribution to its shareholders of the Orchard common stock and preferred stock held by the company.
ESL Investments Inc., a hedge fund controlled by Sears Chairman Edward Lampert, will become Orchard's largest owner.
Orchard recorded net income of $8.72 million in fiscal year 2010 on revenues of $660.70 million.