Tractor Supply executives announced Wednesday they have received clearance from the Federal Trade Commission to close on the $320 million purchase of Missouri-based peer Orscheln Farm and Home.
According to a release, the all-cash closing is anticipated to be completed Wednesday, with Brentwood-based Tractor Supply to acquire a net 81 stores and divest the remaining 85 stores to two buyers approved by the FTC.
The net purchase price of the 81 stores acquired and retained is approximately $238 million before working capital adjustments. The acquisition is anticipated to generate an estimated future tax benefit of approximately $20 million.
The acquisition will position Tractor Supply to record annual sales exceeding $14 billion. It will yield about 2,100 Tractor Supply Stores and 50,000 employees, with an opportunity to increase store locations to 2,800.
The deal was originally announced in February 2021.
Founded in 1960 and based in Moberly, Missouri, Orscheln Farm and Home runs 166 stores in 11 states. Nearly 100 of Orscheln’s stores are located in Missouri and Kansas, in which Tractor Supply already has more than 50 of its roughly 2,029 locations. The deal also will more than double Tractor Supply’s store base in Iowa and Nebraska.
"Today is an important day for Tractor Supply as this acquisition expands our ability to better serve our customers in the Midwest,” Hal Lawton, Tractor Supply president and chief executive officer, said in the release. “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.
Shares of Tractor (Ticker: TSCO) rose about 1.4 percent Wednesday to $203.53. The shares started the year trading at $228.38.