Tractor Supply is making a big addition to its fleet of farm and ranch locations.
The Brentwood, Tenn.-based retailer reported that it is acquiring Orscheln Farm & Home in an all-cash transaction for approximately $297 million, net of acquired estimated future tax benefits of $23 million.
Orscheln Farm & Home operates 167 stores located in 11 states including Missouri, Kansas, Nebraska, Iowa, Indiana, Oklahoma, Arkansas, Texas, Kentucky, Illinois and Ohio. The company's corporate office is located in Moberly, Mo., where it also maintains a distribution center.
The acquisition is conditioned on the receipt of regulatory approval and satisfactory completion of customary closing conditions.
Tractor Supply said that it intends to fund the acquisition through existing cash on hand.
Like Tractor Supply, Orscheln has a retail focus on animal and pet care products, hardware, tools, lawn and garden, and workwear. The company also maintains a solid e-commerce presence while offering buy online/pick-up at store services.
“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,” Hal Lawton, president and CEO of Tractor Supply, said in a statement issued this morning. “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.”