On February 17, 2021, US retailer Tractor Supply announced that it reached an agreement to acquire farm and ranch retailer Orscheln Farm and Home, for an all-cash consideration of approximately $297 million, net of acquired estimated future tax benefits of $23 million. Orscheln Farm and Home currently operates 167 stores across 11 states: Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, Ohio, Oklahoma and Texas. The acquisition is subject to the attainment of regulatory approval and satisfactory completion of customary closing conditions. As of December 26, 2020, Tractor Supply operates 1,923 namesake stores in 49 US states and 182 Petsense stores across 25 states. With its latest acquisition, Tractor Supply will significantly expand its footprint in the Midwest through Orscheln Farm and Home’s network of 167 stores in the region. Hal Lawton, Tractor Supply’s President and Chief Executive Officer, said “this is an exciting step for Tractor Supply as we expand our footprint in the Midwest with the high-quality assets of Orscheln Farm and Home. We have always had great respect for Barry Orscheln and the team at Orscheln Farm and Home for the strong connection they have with customers in the communities they serve, along with their industry knowledge and capabilities. With our shared values and passion for the Out Here lifestyle, we are honored to welcome Orscheln Farm and Home to the Tractor Supply family. We look forward to bringing together our highly complementary cultures and teams to realize the long-term value and benefits that we expect this acquisition to deliver.” Barry Orscheln, Chairman and CEO of Orscheln Farm and Home stated “for more than 60 years, my family, our Orscheln Farm and Home employees and I have been committed to serving the needs of rural communities across the Midwest. I am very proud of all that we have accomplished over this time. I am confident that with Tractor Supply our stores will be well-positioned to continue Orscheln’s tradition of taking care of our customers and communities for the next phase of growth,” According to Tractor Supply’s preliminary estimates, the acquisition is likely to be immediately accretive to earnings per share upon closing, and the accretion will likely grow with time as collaborative synergies are achieved. Tractor Supply plans to use its existing cash on hand to fund the acquisition. Tractor Supply is using Goldman Sachs & Co. as its financial advisors, as well as Bass, Berry & Sims PLC as its legal advisors for the acquisition. Orscheln Farm and Home has availed the services of Fifth Third Securities as financial advisors and Stinson LLP as legal advisors. Tractor Supply’s last major acquisition was that of pet supplies retailer Petsense in 2016, when it acquired the latter for a consideration of around $116 million. Figure 1. List of Tractor Supply’s Major Acquisitions [caption id="attachment_123441" align="aligncenter" width="720"] Source: Company reports[/caption]