BRENTWOOD, Tenn.—Tractor Supply Co., recently announced that it has entered into an agreement to buy Orscheln Farm and Home in an all-cash transaction for about $297 million.
Orscheln Farm and Home operates 167 stores located in 11 states: Missouri, Kansas, Nebraska, Iowa, Indiana, Oklahoma, Arkansas, Texas, Kentucky, Illinois and Ohio. The acquisition is conditioned on the receipt of regulatory approval and satisfactory completion of customary closing conditions, the companies said. Orscheln has stores in Bowling Green and Louisiana.
“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 chief executive officer. “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.”
Barry Orscheln, chair and chief executive officer of Orscheln Farm and Home, added that, “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 said in a news release its estimates indicate the acquisition would immediately increase earnings per share upon closing. They anticipate that this increase would continue to grow over time as two companies become one. Tractor Supply said it intends to fund the acquisition through existing cash on hand.
Tractor Supply has been in business for 80 years.