September 29, 2016

Tractor Supply announces acquisition of Petsense

Tractor Supply officials announced today the company has acquired Petsense, a 136-store pet specialty retailer headquartered in Scottsdale, Arizona.

The transaction price was roughly $116 million, net of acquired estimated future tax benefits of $29 million. The acquisition was a cash transaction financed with cash-on-hand and revolver debt. The transaction, including transaction and integration costs, isn’t anticipated to be material to Tractor Supply’s net earnings per diluted share for fiscal 2016.

Tractor Supply is a leading rural lifestyle retail chain operating 1,575 stores in 49 states. Store locations are focused on supplying the lifestyle needs of recreational farmers and ranchers, as well as tradesmen and small businesses. Stores are located primarily in towns surrounding major metropolitan markets and in rural communities.

Petsense offers pet supplies and services at 136 store locations in 25 states. Following the acquisition, Petsense will operate as a subsidiary of Tractor Supply Company out of Scottsdale and will continue to be led by Petsense’s senior management team. Tractor Supply expects to expand Petsense at a target rate of 15 to 20 percent per year. Additionally, Tractor Supply’s two HomeTown Pet stores will be converted to Petsense locations.

As we looked at the future for Petsense, we recognized Tractor Supply Company as a natural fit to continue our growth, said Bob Angstead, president and CEO of Petsense. “The Tractor Supply team has a strong culture, and we share many of the same values, as well as an appreciation of the opportunities presented by smaller towns and communities,” Angstead said. “Additionally, the Tractor Supply team has the experience and resources to help expand Petsense to the many untapped markets across the country.”


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