M&A
confidence high
sentiment positive
materiality 0.80
FTC clears Tractor Supply to close Orscheln Farm and Home acquisition; net purchase price $238M for 81 stores
TRACTOR SUPPLY CO /DE/
- FTC clearance obtained; closing expected October 12, 2022. Net purchase price ~$238M after divesting 85 stores to Bomgaars and Buchheit for ~$72M.
- Revenue from acquisition expected to add ~$75M to net sales in Q4/FY2022, neutral to operating income; at least $300M in FY2023, accretive by at least $0.10 to EPS.
- Tractor Supply raises store growth opportunity to 2,800 locations (+100 stores). Post-closing: >2,100 stores, >$14B annual revenue, 50,000 team members.
- Acquired stores to be remodeled to Tractor Supply brand over 15 months. Orscheln HQ and distribution center to be sold to Bomgaars for ~$10M within 15 months.