Tractor Supply Company is expanding its footprint in the Midwest through an acquisition.
The nation’s largest rural lifestyle retailer said that it has acquired Orscheln Farm and Home in an all-cash transaction of approximately $297 million, net of acquired estimated future tax benefits of $23 million. Based in Moberly, Missouri, Orscheln Farm and Home is a 60-plus-year-old family-operated retailer with 167 stores in 11 states, including Missouri, Kansas, Nebraska, Iowa, Indiana, Oklahoma, Illinois and Ohio.
Tractor Supply intends to fund the acquisition through existing cash on hand. The company’s preliminary estimates indicate the acquisition will be immediately accretive to earnings per share upon closing, with the earnings accretion is anticipated to grow over time as planned synergies are achieved.
“This is an exciting step for Tractor Supply as we expand our footprint in the Midwest with the high-quality assets of Orscheln Farm and Home. said Hal Lawton, president and CEO, Tractor Supply. “We have always had great respect for Barry Orscheln and the team at Orscheln Farm and Home for the strong connection they have with customers in the communities they serve, along with their industry knowledge and capabilities. We look forward to bringing together our highly complementary cultures and teams to realize the long-term value and benefits that we expect this acquisition to deliver.”
Barry Orscheln, chairman and CEO of Orscheln Farm and Home, commented, “For more than 60 years, my family, our Orscheln Farm and Home employees and I have been committed to serving the needs of rural communities across the Midwest. I am very proud of all that we have accomplished over this time. I am confident that with Tractor Supply our stores will be well-positioned to continue Orscheln’s tradition of taking care of our customers and communities for the next phase of growth.”
As of December 26, 2020, Tractor Supply operated 1,923 namesake stores in 49 states and 182 Petsense stores in 25 states.