BRENTWOOD, Tenn. – Tractor Supply Company (NASDAQ: NASDAQ: ), a leading rural lifestyle retailer with a market cap of $28.45 billion and annual revenue of more than $14.7 billion, announced the completion of its acquisition of Allivet, an online pet pharmacy, in a market-expanding move company to reach 15 billion dollars. The acquisition, which was initially announced on October 24, 2024, is expected to represent a $1 billion revenue opportunity for Tractor Supply at full scale. According to InvestingPro data, the company maintains a strong financial health score and has shown impressive growth with a total return of 29% year-to-date.
Allivet, founded in 1992 and fully licensed in all 50 states, operates three distribution centers that enable next-day delivery to the vast majority of the US population. The company has carved out a niche in providing more convenient pet care through its online platform, offering brand-name medications, expert pharmacy advice and an auto-delivery program for regular deliveries.
Hal Lawton, President and CEO of Tractor Supply, expressed his excitement about the acquisition, saying, “We are 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 schedule service.” Lawton also noted the company’s intent to provide value-oriented pet and animal prescription service to its 37 million Neighbor’s Club members and to introduce Tractor Supply to Allivet’s customer base.
Financial details of the acquisition have not been disclosed.
Tractor Supply Company, with a history of more than 85 years, has established itself as the largest rural lifestyle retailer in the United States, with more than 2,270 Tractor Supply stores in 49 states as of September 28, 2024. The company also operates Petsense by Tractor Supply, a smaller specialty pet store, which has 205 stores in 23 states. InvestingPro analysis reveals the company’s strong financial fundamentals, with a healthy current ratio of 1.48 and a consistent track record of increasing dividends for 15 consecutive years. With a subscription to InvestingPro, you get access to more than 10 additional exclusive expert tips and comprehensive financial indicators.
This expansion into the online pet pharmacy space underscores Tractor Supply’s commitment to serving the needs of pet owners and those who embrace the rural lifestyle. The integration of Allivet’s services is poised to enhance Tractor Supply’s product offerings and availability, aligning with the company’s strategic growth goals. Based on InvestingProAccording to fair value analysis, the stock appears to be currently trading close to its fair value, and analysts maintain positive profitability forecasts for the coming year. For detailed insights and comprehensive analysis, including an exclusive Pro Research Report covering this and over 1,400 other top stocks, consider subscribing to InvestingPro.
The reported information is based on a public statement.
In other recent news, Tractor Supply Company has been the subject of several major updates. The company recently went through a 5:1 stock split, increasing its authorized shares from 400 million to 2 billion. The move is part of Tractor Supply’s ongoing efforts to manage its capital structure and reflect confidence in its long-term growth prospects. Truist Securities adjusted their price target on Tractor Supply to $63 after the split, maintaining a Buy rating on the stock.
Furthermore, Tractor Supply’s third-quarter results beat estimates, with the company adjusting its 2024 earnings guidance to project net sales between $14.85 billion and $15 billion, and diluted EPS between $10.10 and $10.40. Benchmark maintained its Buy rating, while UBS and Barclays (LON:) maintain Neutral ratings and KeyBanc Capital Markets has a “Sector Weight” rating.
These recent developments point to the consistent performance of 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, underscore its commitment to growth and expansion.
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