Tractor Supply is making a big addition to its fleet of farm and ranch locations.
The Brentwood, Tenn.-based retailer reported that it is acquiring Orscheln Farm & Home in an all-cash transaction for approximately $297 million, net of acquired estimated future tax benefits of $23 million.
Orscheln Farm & Home operates 167 stores located in 11 states including Missouri, Kansas, Nebraska, Iowa, Indiana, Oklahoma, Arkansas, Texas, Kentucky, Illinois and Ohio. The company's corporate office is located in Moberly, Mo., where it also maintains a distribution center.
The acquisition is conditioned on the receipt of regulatory approval and satisfactory completion of customary closing conditions.
Tractor Supply said that it intends to fund the acquisition through existing cash on hand.
Like Tractor Supply, Orscheln has a retail focus on animal and pet care products, hardware, tools, lawn and garden, and workwear. The company also maintains a solid e-commerce presence while offering buy online/pick-up at store services.
“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,” Hal Lawton, president and CEO of Tractor Supply, said in a statement issued this morning. “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.”
Barry Orsheln, chairman and CEO of Orscheln Farm and Home, said that the company has served the needs of rural communities in the Midwest for more than 60 years.
“I am very proud of all that we have accomplished over this time,” Orsheln noted. “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.”
For Tractor Supply, Goldman Sachs & Co. LLC is acting as financial advisor, and Bass, Berry & Sims PLC is acting as legal advisor. Fifth Third Securities is acting as financial advisor to Orscheln Farm and Home, while Stinson LLP is acting as legal advisor.
As of late December 2020, Tractor Supply operated more than 1,923 stores in 49 states. The company also operates 182 Petsense small-box pet specialty supply stores in 25 states.
Last month, Tractor Supply reported that fourth quarter 2020 sales surged 31.3% to a company record of $2.88 billion from sales of $2.19 billion in the fourth quarter of 2019. Comparable store sales increased 27.3% in the fourth quarter.