The Federal Trade Commission (FTC) has given Tractor Supply Company the go-ahead to close 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 sell 85 of those stores to a pair of buyers: Bomgaars Supply — which will take 73 stores — and Buchheit Enterprises, which will get the remaining 12 stores.
Tractor Supply 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 expected to generate an estimated future tax benefit of about $20 million.
Related: Tractor inventory is driving the rural lifestyle and pet ownership trends to new highs
Tractor Supply first announced the purchase in February 2021, calling it the largest acquisition in the company’s 83-year history.
“While it took longer than we expected to agree to this settlement with the FTC, the outcome is consistent with our expectations,” CEO Hal Lawton said in the news release.
Learn more: Tractor supply company records double-digit growth in digital sales for 39th consecutive quarter
Lawton added that the company was on track to achieve a number of milestones, including annual revenue of more than $14 billion, a store base of more than 100 locations and a workforce of 50,000 employees.
Read more: Petco goes to tractor stock, Walmart with new country farm store format
Earlier this year, Tractor Supply said it hopes to grow 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 e-commerce segment for the 39th consecutive quarter.
PYMNTS reported in June that Tractor Supply faces competition from Petco as that retailer opened its first Neighborhood Farm & Pet Supply to go after what it says is a $7 billion market for rural animal care, food and supplies.
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