FTC Approves Acquisition of Orscheln by Tractor Supply
By Gordon Hopkins
While a deal has been in the works for well over a year, Tractor Supply Company announced on Tuesday, 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, which describes itself as “the largest rural lifestyle retailer in the United States,” will not be taking over every Orscheln store. The company will acquire a net 81 stores and divest the remaining 85 stores to two other buyers, Buchheit and Bomgaars, approved by the FTC. The net purchase price of the 81 stores acquired and retained is approximately $238 million before working capital adjustments.
The deal will also make Bomgaars, a chain based out of Sioux City, Iowa, the second largest farm and tractor retailer in the U.S.
The Orscheln store in Fairbury will remain with Tractor Supply Company. The store in Beatrice will become part of the Buchheit chain.
“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. “Importantly, 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.”
Lawton added, “While agreeing to this remedy with the FTC took longer than we anticipated, the outcome is in line with our expectations. 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.”
