Orscheln Farm & Home Purchased by Tractor Supply Company

Orscheln Farm & Home in Excelsior Springs will soon become a Tractor Supply Company

Tractor Supply Co. Expands Store Footprint in the Midwest, Adds Excelsior Springs Orscheln’s to List of Acquisitions

November 22, 2022 – Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, announced on October 11, 2022, that it received clearance from the Federal Trade Commission (“FTC”) to close on its previously announced acquisition of Orscheln Farm and Home. Tractor Supply Company will acquire a total of 166 Orscheln Farm & Home stores, retaining 81 store locations and selling the remaining 85 stores to two buyers approved by the FTC, Bomgaars Supply, Inc. (73 stores) and Buchheit Enterprises, Inc. (12 stores). Caitlin Foster, PR Coordinator for Tractor Supply Company, told the Excelsior Citizen they will be working with local officials and various trades to plan out the remodel and are currently estimating the remodel to be complete during Q3 2023 (July-Sept).

“Today is an important day for Tractor Supply as this acquisition expands our ability to better serve our customers in the Midwest. We are committed to providing customers in the region with an elevated product assortment, a meaningful loyalty offering, an enhanced digital shopping experience and so much more that Tractor Supply is able to offer,” said Hal Lawton, Tractor Supply’s President and Chief Executive Officer. Lawton continued, “We are very pleased with the high-quality locations that will be converted to Tractor Supply stores. I want to thank the Team Members from both companies for their contributions and focus on caring for our customers during the extended review with the FTC. With a shared culture and values, we are excited to welcome the team to Tractor Supply and look forward to an exciting future going forward. We are honored to build on the legacy of Barry Orscheln and the team.”

Financial Terms of the Acquisition

The deal is an all-cash transaction that Tractor Supply anticipates financing through its balance sheet. The Company will acquire 166 Orscheln Farm and Home stores for approximately $320 million, before working capital adjustments. As part of the remedy reached with the FTC, Tractor Supply will divest 85 locations to two buyers, Bomgaars Supply, Inc. (73 stores) and Buchheit Enterprises, Inc. (12 stores), shortly after closing the transaction. Proceeds of the store divestitures will be approximately $72 million. In addition, Tractor Supply has agreed to sell the Orscheln Farm and Home corporate headquarters and distribution center to Bomgaars for approximately $10 million within 15 months after the closing of the transaction.

The store divestitures and sale of the corporate headquarters and distribution center bring the net purchase price of the 81 stores acquired to approximately $238 million, before working capital adjustments. The acquisition is anticipated to generate an estimated future tax benefit of approximately $20 million.

Lawton added, “Tractor Supply is on track to achieve several monumental milestones in the growth of our company including annual revenues in excess of $14 billion, a store base of over 2,100 Tractor Supply locations, and a highly engaged workforce of 50,000 Team Members. We are excited to build on our track record of long-term growth as we look to unlock revenue and earnings opportunities with this attractive acquisition that enhances our growth profile.”

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1 thought on “Orscheln Farm & Home Purchased by Tractor Supply Company”

  1. Well, we heard from a reliable source you people sponsor and support drag queen type behaviors and events for not only adults, but for children. If this is not true, or has more to this story, we hope to see some strong words coming from Tractor Supply. Until we hear otherwise, we will not be doing business with our local Orschelns or Tractor Supply in our neighboring towns.

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