Tractor Supply Acquiring Orscheln Farm And Home

In a move to boost its position in the Midwest, Tractor Supply Co. has agreed to acquire Orscheln Farm and Home in an all-cash transaction valued at $297 million, net of acquired estimated future tax benefits of $23 million.

Orscheln Farm and Home operates 167 stores located in Missouri, Kansas, Nebraska, Iowa, Indiana, Oklahoma, Arkansas, Texas, Kentucky, Illinois and Ohio, Tractor Supply stated.

A preliminary estimate indicates the acquisition would be immediately accretive to Tractor Supply earnings per share upon closing, the company noted. Tractor Supply believes the earnings accretion will grow over time as planned synergies are achieved. Tractor Supply intends to fund the acquisition through existing cash on hand, the company added.

“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, Tractor Supply’s president and CEO. “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. With our shared values and passion for the Out Here lifestyle, we are honored to welcome Orscheln Farm and Home to the Tractor Supply family. 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.”

As of December 26, 2020, Tractor Supply operated 1,923 namesake stores in 49 states and an e-commerce website at www.TractorSupply.com, as well as 182 Petsense stores in 25 states.