BRENTWOOD, Tenn. - Tractor Supply Company (NASDAQ: NASDAQ:TSCO), a leading retailer for the rural lifestyle with a market capitalization of $28.45 billion and annual revenue exceeding $14.7 billion, has announced the completion of its acquisition of Allivet, an online pet pharmacy, a move that broadens the company's market reach by $15 billion. The acquisition, which was initially revealed on October 24, 2024, is expected to present a $1 billion revenue opportunity for Tractor Supply at full scale. According to InvestingPro data, the company maintains a strong financial health rating and has demonstrated impressive growth with a 29% total return year-to-date.
Allivet, established in 1992 and fully licensed across all 50 states, operates three distribution centers that enable it to offer next-day delivery to a vast majority of the U.S. population. The company has carved out a niche in making pet care more convenient through its online platform, offering brand-name medications, expert pharmacy advice, and an auto-ship program for regular deliveries.
Hal Lawton, president and CEO of Tractor Supply, expressed enthusiasm about the acquisition, stating, "We're very excited to officially welcome the Allivet team to the Tractor Supply family. This acquisition complements and expands our existing 'Life Out Here' product and services line-up." Lawton also highlighted the company's intent to provide its 37 million Neighbor's Club members with a value-oriented pet and animal prescription service and to introduce Tractor Supply to Allivet's customer base.
The financial details of the acquisition have not been disclosed.
Tractor Supply Company, with a history spanning over 85 years, has established itself as the largest rural lifestyle retailer in the United States, with over 2,270 Tractor Supply stores across 49 states as of September 28, 2024. The company also operates Petsense by Tractor Supply, a smaller-scale pet specialty retailer, which has 205 stores in 23 states. InvestingPro analysis reveals the company's strong financial foundation, with a healthy current ratio of 1.48 and a consistent track record of raising dividends for 15 consecutive years. Get access to over 10 additional exclusive ProTips and comprehensive financial metrics with an InvestingPro subscription.
This expansion into the online pet pharmacy space underscores Tractor Supply's commitment to serving the needs of pet owners and those who embrace a rural lifestyle. The integration of Allivet's services is poised to enhance Tractor Supply's product offerings and accessibility, aligning with the company's strategic growth objectives. Based on InvestingPro's Fair Value analysis, the stock currently appears to be trading near its fair value, with analysts maintaining positive profitability forecasts for the coming year. For detailed insights and comprehensive analysis, including the exclusive Pro Research Report covering this and 1,400+ other top stocks, consider subscribing to InvestingPro.
The information reported is based on a press release statement.
In other recent news, Tractor Supply Company has been the subject of several major updates. The company has recently undergone a 5:1 stock split, increasing its authorized shares from 400 million to 2 billion. This move is part of Tractor Supply's ongoing efforts to manage its capital structure and reflects confidence in its long-term growth prospects. Truist Securities has adjusted the price target for Tractor Supply to $63 post-split, maintaining a Buy rating on the stock.
Furthermore, Tractor Supply's Q3 results exceeded estimates, with the company adjusting its 2024 earnings guidance to project net sales between $14.85 billion and $15 billion, and a diluted EPS between $10.10 and $10.40. Benchmark has kept a Buy rating, while UBS and Barclays (LON:BARC) maintain neutral ratings, and KeyBanc Capital Markets holds a "Sector Weight" rating.
These recent developments indicate a consistent performance by Tractor Supply Company. The company's strategic initiatives, including the acquisition of Allivet, an online pet pharmacy, and plans to open 90 new stores in 2025, underline its commitment to growth and expansion.
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