- Expanding its footprint in the Midwest, Tractor Supply (NASDAQ:TSCO) inked an acquisition agreement for Orscheln Farm and Home in an all-cash transaction for ~$297M, net of acquired estimated future tax benefits of $23M; funded through existing cash on hand.
- Orscheln Farm and Home operates 167 stores located in 11 states.
- TSCO's early estimates indicate the acquisition to be accretive immediately to EPS on transaction closure.
- The earnings accretion is expected to grow over time as planned synergies are achieved.
- Early last week, Tractor Supply was upgraded to Buy rating at Goldman Sachs.
- Shares trading 1.1% higher premarket.