Press release
BRENTWOOD, Tennessee – (BUSINESS WIRE) – Tractor Supply Company, the largest rural lifestyle retailer in the United States, today announced that it has signed a contract to acquire Orscheln Farm and Home in a cash transaction for approximately $ 297 million, net estimated future tax benefits of $ 23 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 conditional on receiving regulatory approval and satisfactory compliance with the usual closing conditions.
“This is an exciting step for Tractor Supply, as we expand our presence in the Midwest with high quality assets from Orscheln Farm and Home. We have always had great respect for Barry Orscheln and the Orscheln Farm and Home team for the strong connection they have with customers in the communities they serve, along with their knowledge and industry capabilities. With our shared values and passion for the Out Here lifestyle, we are honored to receive Orscheln Farm and Home for the Tractor Supply family. We look forward to bringing our highly complementary cultures and teams together to realize the long-term value and benefits that we hope this acquisition will deliver, ”said Hal Lawton, president and CEO of Tractor Supply.
Barry Orscheln, President and CEO of Orscheln Farm and Home, commented: “For more than 60 years, my family, our Orscheln Farm and Home employees and I have been committed to meeting the needs of rural communities in the Midwest. I am very proud of everything we have achieved over this time. I am confident that, with Tractor Supply, our stores will be well positioned to continue Orscheln’s tradition of caring for our customers and communities for the next phase of growth. ”
Tractor Supply’s preliminary estimates indicate that the acquisition will be immediately added to earnings per share after closing. The profit increase is expected to grow over time, as planned synergies are achieved. Tractor Supply intends to finance the acquisition with the existing cash.
For Tractor Supply, Goldman Sachs & Co. LLC is acting as a financial advisor and Bass, Berry & Sims PLC is acting as a legal advisor. Fifth Third Securities is acting as a financial advisor for Orscheln Farm and Home, while Stinson LLP is acting as a legal advisor.
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