BRENTWOOD, TN. – The Tennessee-based Tractor Supply Company announced last week the purchase of the Orscheln Farm and Home chain of stores in an all-cash transaction for $297 million.
Orscheln’s operated stores in Garnett, Iola and Ottawa as well as 164 other stores across 11 midwestern states. TS operates more than 1,900 stores in 49 states.
A press release from Tractor Supply said the acquisition was conditioned on the receipt of federal regulatory approval and the completion of certain closing conditions. The deal was announced February 17.
“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.
Orscheln’s in Garnett operated out of the former Alco building on north Highway 59. Alco built the Garnett location in 1997 and closed in March 2015 after the chain declared bankruptcy. Orscheln took over a number of Alco stores across the former retailer’s service territory as well as its Abilene-based distribution center. Orscheln’s is based in Moberly, Mo.
Lawton said 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.”
Tractor Supply’s stock is publicly traded, and the company’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.
Tractor Supply sells a mix of products similar to Orscheln’s but targeted toward a slightly more urban buyer in the home, land, pets, farm, hobby farm and niche farm markets. The company has some 42,000 employees and aso owns and operates Petsense, a small-box pet speciality supply retailer targeted primarily in small andmid-size communities, with 182 Petsense stores in 25 states.