Tractor Supply Company Receives FTC Approval to Acquire Orscheln Farm & Home
October 12, 2022
Moberly, MO – On October 11, the Federal Trade Commission announced their approval of the acquisition of Orscheln Farm & Home by Tractor Supply Company, the largest rural lifestyle retailer in the United States.
Of the original 166 Orscheln Farm & Home retail stores included in the initial acquisition negotiations between Orscheln Farm & Home and Tractor Supply company, 81 stores will be retained by Tractor Supply Company, including the Moberly and Salisbury stores, and 85 stores will be divested by Tractor Supply Company. Within the next 15 months, it is anticipated the Moberly and Salisbury stores will be converted to the Tractor Supply Company brand.
Of the 85 stores to be divested, Bomgaars Supply, Inc. will acquire 73 and Buchheit Enterprises, Inc. will acquire 12. The net acquisition price of the 81 stores retained by Tractor Supply Company is approximately $238 million before working capital adjustments and are anticipated to generate an estimated future tax benefit of approximately $20 million.
Bomgaars, a family owned and operated supplier with 107 stores in Iowa, Colorado, Idaho, Kansas, Nebraska, Minnesota, South Dakota, and Wyoming, employing approximately 3,000 people, will also be purchasing the Orscheln Farm & Home headquarters and distribution center in Moberly. In addition to adding 73 stores to their inventory bringing it to 180, they will also be adding 1400 new employees. Bomgaar’s acquisition of the headquarters and distribution center is slated to occur in October or November of 2023.
Of the 73 Orscheln stores acquired by Bomgaars, 16 will rebrand to Bomgaars in Missouri. This will be Bomgaars initial presence in the State of Missouri and make them the second largest farm and ranch retail store owners in the nation only behind Tractor Supply Company.
“This is welcome news to our area. Area retail stores we have all come to rely on will continue without interruption under the Tractor Supply Company brand,” stated Randy Asbury, interim president for the Moberly Area Economic Development Corporation.
“We also see the headquarter and distribution center acquisition by Bomgaar’s as a strong sign of the ongoing work and preservation of employment that will be required to service the 16 new Bomgaar stores through the Moberly distribution hub.
“Having another family-owned business locating to this area with similar rural characteristics and values is exciting even amidst the change that is occurring,”
“Central Missouri, and specifically Moberly, have been blessed through the years to have the Orscheln Farm & Home headquarters, retail stores, and distribution center as a daily presence in the life of the area. The Orscheln family has played an instrumental role in the strong Central Missouri economy through their decades-long investments and employment. We value their continued presence through their ongoing ventures and congratulate them on this transaction.
“Though change is never easy, we are grateful for the years of service the Orscheln Farm & Home leadership and employees have brought to our communities. We now welcome Tractor Supply Company and Bomgaars, both companies with strong reputations and futures to Mid-Missouri. We look to the future with optimism as they become our new friends and neighbors.”