The Federal Trade Commission (FTC) has given Tractor Supply Company the go-ahead to close on its purchase of Orscheln Farm and Home, the rural lifestyle retailer said.
According to a Wednesday (Oct. 12) news release, the Tennessee-based chain will acquire 166 stores from Orscheln for approximately $320 million, before working capital adjustments.
As part of its agreement with the FTC, Tractor Supply will divest 85 of those stores to a pair of buyers: Bomgaars Supply — which will take 73 stores — and Buchheit Enterprises, which gets the remaining 12 stores.
Tractor Supply has also agreed to sell the Orscheln corporate headquarters in Missouri, as well as its distribution center, to Bomgaars for approximately $10 million.
The divestitures and sale of the headquarters bring the net purchase price of the 81 stores to $238 million, Tractor Supply said, while the acquisition is anticipated to generate an estimated future tax benefit of about $20 million.
Tractor Supply first announced the purchase in February 2021, calling it the largest acquisition in the company’s 83-year history.
“While agreeing to this remedy with the FTC took longer than we anticipated, the outcome is in line with our expectations,” CEO Hal Lawton said in the news release.
Lawton added that the company was on track to reach a number of milestones, including yearly revenues of more than $14 billion, a store base of more than 2,100 locations, and a workforce of 50,000 staff members.
Earlier this year, Tractor Supply said it hoped to push its digital sales past $2 billion by 2026, or more than 15% of total revenue. In April, PYMNTS noted the continued expansion of the retailer’s online business, as it turned in double-digit growth in its eCommerce segment for the 39th quarter in a row.
PYMNTS reported in June that Tractor Supply was facing competition from Petco, as that retailer opened its first Neighborhood Farm & Pet Supply to chase what it says is a $7 billion market for rural animal care, food and supplies.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.