Bomgaars is purchasing 73 Orscheln Farm and Home stores, making the Sioux City, Iowa-based retailer the nation’s second-largest farm and ranch retailer behind Tractor Supply Co.
Tennessee-based Tractor Supply had been planning to acquire Orscheln for over a year, but federal anti-trust laws held up the purchase. The $320 million acquisition came with the condition that TSC divest 85 of the stores to two third-party buyers: Bomgaars and Buchheit Enterprises.
Tractor Supply has also agreed to sell the Orscheln Farm and Home’s corporate headquarters and distribution center to Bomgaars for approximately $10 million within 15 months after the closing of the transaction.
The new Bomgaars locations will be in Missouri, Oklahoma, Texas, Arkansas, Kentucky, Indiana, and Ohio — nearly doubling the retailer’s territory to 15 states and growing to 180 locations. Buchheit Enterprises is expected to take on 12 of the former Orscheln locations.
Orschlen stores were founded in Sedalia, Missouri, in 1960 by W.C. “Colonel” Orscheln, while Bomgars began serving customers out of their office in Sioux City in 1944 William H. Bomgaars. Although Orscheln grew more quickly than Bomgaars, notably that Orscheln had stores in eleven states: Missouri, Kansas, Iowa, Arkansas, Oklahoma, Nebraska, Illinois, Kentucky, Indiana, Texas, and Ohio.
“We are pleased to announce that after a year and a half of very complex, multi-party negotiations, Bomgaars will acquire 73 stores in seven states, and experience an unprecedented level of growth for our customers, our community, and our company,” said CEO Torrey Wingert in the company’s release. “While the federal approval process was at times equally exhausting and frustrating, our team and the Bomgaars family remained steadfast in their determination to complete this acquisition, and this collective commitment to do so was a big part in ensuring this deal was successfully concluded,” added Wingert.