Tractor Supply Company to Acquire Allivet, a Leading Online Pet and Animal Pharmacy
Tractor Supply Company (NASDAQ: TSCO) has announced the acquisition of Allivet, a leading online pet pharmacy licensed in all 50 states. The all-cash transaction will expand TSCO's total addressable market by $15 billion and enhance services for its 37 million Neighbor's Club members, of whom 75% are pet owners. Allivet operates three distribution centers providing next-day delivery to most of the U.S. The acquisition is expected to close in TSCO's fiscal first quarter of 2025 and be accretive to earnings per share in year one. The deal strengthens an existing partnership, as Allivet's PetRx platform has been providing digital pet pharmacy services under the Tractor Supply brand.
Tractor Supply Company (NASDAQ: TSCO) ha annunciato l'acquisizione di Allivet, una rinomata farmacia per animali domestici online autorizzata in tutti e 50 gli stati. La transazione completamente in contante espanderà il mercato totale indirizzabile di TSCO di 15 miliardi di dollari e migliorerà i servizi per i 37 milioni di membri del Neighbor's Club, di cui il 75% sono proprietari di animali. Allivet gestisce tre centri di distribuzione che offrono consegna il giorno successivo nella maggior parte degli Stati Uniti. Si prevede che l'acquisizione si chiuda nel primo trimestre fiscale del 2025 di TSCO e sia accrescitiva per l'utile per azione nel primo anno. L'accordo rafforza una partnership esistente, poiché la piattaforma PetRx di Allivet fornisce servizi digitali di farmacia per animali sotto il marchio Tractor Supply.
Tractor Supply Company (NASDAQ: TSCO) ha anunciado la adquisición de Allivet, una farmacia en línea líder para mascotas autorizada en los 50 estados. La transacción completamente en efectivo ampliará el mercado total direccionable de TSCO en 15 mil millones de dólares y mejorará los servicios para sus 37 millones de miembros del Neighbor's Club, de los cuales el 75% son dueños de mascotas. Allivet opera tres centros de distribución que ofrecen entrega al día siguiente en la mayor parte de EE. UU. Se espera que la adquisición se cierre en el primer trimestre fiscal de 2025 de TSCO y que sea accretiva para las ganancias por acción en el primer año. El acuerdo fortalece una asociación existente, ya que la plataforma PetRx de Allivet ha estado proporcionando servicios digitales de farmacia para mascotas bajo la marca Tractor Supply.
트랙터 서플라이 컴퍼니 (NASDAQ: TSCO)는 모든 주에서 라이센스를 보유한 온라인 애완동물 약국 Allivet의 인수를 발표했습니다. 현금 거래는 TSCO의 총 유효 시장을 150억 달러 확장하고 3,700만 명의 이웃 클럽 회원을 위한 서비스를 향상시킬 것입니다. 이 중 75%가 애완동물 소유자입니다. Allivet은 미국 대부분에 다음 날 배송을 제공하는 세 개의 물류 센터를 운영하고 있습니다. 인수는 TSCO의 2025 회계년도 첫 분기에 종료될 것으로 예상되며, 첫 해의 주당 순이익에 긍정적인 영향을 미칠 것입니다. 이 거래는 기존의 파트너십을 강화하며, Allivet의 PetRx 플랫폼은 트랙터 서플라이 브랜드 하에 디지털 애완동물 약국 서비스를 제공해왔습니다.
Tractor Supply Company (NASDAQ: TSCO) a annoncé l'acquisition de Allivet, une pharmacie en ligne pour animaux de compagnie de premier plan, autorisée dans les 50 États. La transaction entièrement en espèces élargira le marché total adressable de TSCO de 15 milliards de dollars et améliorera les services pour les 37 millions de membres du Neighbor's Club, dont 75 % sont des propriétaires d'animaux. Allivet exploite trois centres de distribution offrant une livraison le jour suivant dans la majeure partie des États-Unis. L'acquisition devrait être finalisée au cours du premier trimestre fiscal de 2025 de TSCO et être porteuse de bénéfices par action dès la première année. Cet accord renforce un partenariat existant, la plateforme PetRx d'Allivet fournissant des services numériques de pharmacie pour animaux sous la marque Tractor Supply.
Tractor Supply Company (NASDAQ: TSCO) hat die Übernahme von Allivet, einer führenden Online-Apotheke für Haustiere, die in allen 50 Bundesstaaten lizenziert ist, bekannt gegeben. Die gesamte Bartransaktion wird den insgesamt adressierbaren Markt von TSCO um 15 Milliarden Dollar erweitern und die Dienstleistungen für die 37 Millionen Mitglieder des Neighbor's Club verbessern, von denen 75 % Haustierbesitzer sind. Allivet betreibt drei Distributionszentren, die eine Lieferung am nächsten Tag in den meisten Teilen der USA anbieten. Es wird erwartet, dass die Übernahme im ersten fiskalischen Quartal 2025 von TSCO abgeschlossen wird und in Jahr eins zu den Erträgen pro Aktie beitragen wird. Der Deal stärkt eine bestehende Partnerschaft, da die PetRx-Plattform von Allivet digitale Apotheke-Dienste unter der Marke Tractor Supply anbietet.
- Expands total addressable market by $15 billion
- Expected earnings per share accretion in year one
- Enhances service offering to 37 million Neighbor's Club members
- Provides access to nationwide pet pharmacy infrastructure with 3 distribution centers
- Leverages existing customer base with 75% being pet owners
- None.
Insights
This strategic acquisition significantly expands TSCO's addressable market by
The acquisition is expected to be accretive to earnings in the first year, indicating strong financial synergies. While the exact purchase price isn't disclosed, TSCO's plan to finance through its balance sheet suggests comfortable leverage levels. The transaction strengthens TSCO's competitive position against both traditional pet retailers and online pharmacies, while creating a more comprehensive ecosystem for its customer base.
The pet pharmacy market represents a high-margin, recurring revenue opportunity with strong growth potential. This acquisition addresses a critical gap in TSCO's service offering, positioning it to capture a larger share of pet-related spending from its loyal customer base. The integration of Allivet's PetRx platform, already familiar through their existing partnership, should enable smooth operational integration and rapid market expansion.
The strategic timing is noteworthy as pet ownership and healthcare spending continue to rise. With Allivet's established partnerships with major industry players like AKC and Fetch Pet Insurance, TSCO gains valuable relationships that could lead to additional revenue streams and market opportunities.
Acquisition expands benefits for Tractor Supply’s 37 million Neighbor’s Club members with a convenient, low-cost pharmacy solution for pets and animals
Compelling Strategic Benefits to Tractor Supply
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Creates significant opportunity to gain share of wallet with its 37 million Neighbor’s Club members, approximately
75% of whom are pet owners - Complements and strengthens existing product and services offering
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Expands the Company’s total addressable market by
$15 billion - Solidifies longstanding partnership between companies
- Leverages strong financial profile of Allivet with expected diluted earnings per share accretion in year one
The Company anticipates leveraging its store footprint and digital offerings to expand Allivet’s reach and sales opportunity. For the last several years, Allivet’s PetRx platform has been a partner with Tractor Supply to offer digital pet pharmacy service under the Tractor Supply brand.
Since its founding in 1992, Allivet has grown to be a leading online pet pharmacy fully licensed in all 50 states with three distribution centers that allow it to efficiently serve the needs of its customers and reach a large majority of the
“We are pleased to announce the acquisition of Allivet, a leading online pet pharmacy. This acquisition enhances the benefits we can offer to our 37 million Neighbor’s Club members with an easy and cost-effective solution to obtain medications and specialty items for their pets and livestock. Allivet is a best-in-class platform with an exceptional management team and a robust financial profile. This strategic tuck-in acquisition exemplifies our commitment to delivering value and growth as we expand our total addressable market. We look forward to welcoming the Allivet team to Tractor Supply,” said Hal Lawton, Tractor Supply’s president and chief executive officer.
Ujjwal Dhoot, chief executive officer of Allivet said, “We are excited for Allivet to join forces with Tractor Supply. With Tractor Supply, we can expand our reach and bring the purpose of our product offering and website to millions of customers. As part of Tractor Supply, we will accelerate our growth and innovation to continue to help pets live long healthy lives by making it easier for pet owners to care for them.”
The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals. The transaction is expected to close in Tractor Supply’s fiscal first quarter of 2025. The deal is an all-cash transaction that Tractor Supply anticipates financing through its balance sheet.
About Tractor Supply Company
For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the
As of September 28, 2024, the Company operated 2,270 Tractor Supply stores in 49 states. For more information on Tractor Supply, visit www.tractorsupply.com.
Tractor Supply Company also owns and operates Petsense by Tractor Supply, a small-box pet specialty supply retailer providing products and services for pet owners. As of September 28, 2024, the Company operated 205 Petsense by Tractor Supply stores in 23 states. For more information on Petsense by Tractor Supply, visit www.Petsense.com.
About Allivet.com
Allivet, a leading pet pharmacy founded in 1992, provides quality prescription and over-the-counter pet medications. The company also provides strategic partnership solutions to customers through retail and e-commerce channels. Their market pioneering 'PetRx-as-a-Service' platform business is growing rapidly with marquee partners such as American Kennel Club (AKC), Tractor Supply, Fetch Pet Insurance, and others. Allivet is a pharmacy at the core, and their mission is to ensure better long-term health outcomes for pets by providing convenient access to pet medications, making compliance easier and supporting pet owners with expert advice and reliable service.
Forward-Looking Statements
This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identified by or are associated with such words as “intend,” “plan,” “believe,” “estimate,” “expect,” “anticipate” and/or the negatives or variations of these terms or similar terminology. Such forward-looking statements include those that address activities, events or developments that the Company or its management believes or anticipates may occur in the future, including the closing of the transaction and the benefits expected therefrom. All forward-looking statements are based upon the Company’s current expectations, various assumptions, and data available from third parties. The Company’s expectations and assumptions are expressed in good faith, and the Company believes there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including: the possibility that the transaction will not close or that the closing may be delayed; the possibility that we may be unable to obtain regulatory approval for the transaction; the potential for litigation or governmental investigations relating to the transaction; the occurrence of events, changes or circumstances that could give rise to the termination of the definitive agreement; the risk that we may be unable to successfully integrate the acquired business; the risk that we may not realize the benefits expected from the transaction; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement of the transaction; the risk that the funds required to complete the transaction become unavailable; completing the transaction may distract the Company’s management from other important matters; and the other factors discussed in “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023, quarterly reports on Form 10-Q, and in the Company’s other filings with the Securities and Exchange Commission which are available at http://sec.gov. The Company undertakes no obligation to update publicly or revise any forward-looking statements in light of new information or future events. For any forward-looking statements contained in this or any other document, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and the Company assumes no obligation to update any such statement.
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Investors
Mary Winn Pilkington (615) 440-4212
Joseph Underwood (615) 440-4658
investorrelations@tractorsupply.com
Media
Tricia Whittemore (615) 440-4410
corporatecommunications@tractorsupply.com
Source: Tractor Supply Company
FAQ
When will Tractor Supply (TSCO) complete the Allivet acquisition?
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What is the size of the market opportunity for TSCO with the Allivet acquisition?
How many Neighbor's Club members will benefit from TSCO's Allivet acquisition?
