Tractor Supply to buy Orscheln Farm and Home
BRENTWOOD, Tenn. - Tractor Supply has agreed to buy Orscheln Farm and Home in an all-cash transaction for $297 million.
Orscheln operates 167 stores located in 11 states including Nebraska, Missouri, Kansas, Iowa, Indiana, Oklahoma, Arkansas, Texas, Kentucky, Illinois and Ohio. There are 19 stores in Nebraska with one in each of the Tri-Cities.
The acquisition is conditioned on the receipt of regulatory approval and satisfactory completion of customary closing conditions.
“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, Tractor Supply’s President and CEO.
He adds Tractor Supply has 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,” said Lawton. “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, said, “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.”
Tractor Supply’s preliminary estimates indicate the acquisition will be immediately accretive to earnings per share upon closing. The earnings accretion is anticipated to grow over time as planned synergies are achieved. Tractor Supply intends to fund the acquisition through existing cash on hand.
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