Salina’s Orscheln Farm store sold to Bomgaars Supply


Orscheln Farm and Home Store in Salina is now a Bomgaars Supply store.

But store visitors won’t immediately notice the difference.

Family-owned retail farm and ranch supply chain headquartered in Sioux City, Iowa, acquired the location at 360 N. Ohio St. in a Federal Trade Commission-approved divestiture agreement last week regarding the sale of the company Orscheln to Tractor Supply.

It is one of 73 stores Bomgaars has acquired, including 21 in Kansas. Other locations in the area include Hutchinson, Newton, McPherson, Pratt, Great Bend, Garden City, Dodge City and Hays.

An additional 16 Orscheln stores in Kansas will be converted to Tractor Supply locations.

All former Orscheln employees here have been retained, said Heather Korbe, marketing director at Bomgaars, with no immediate plans for change.

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A Bomgaars warehouse at the company's headquarters in Sioux City.

While the sale just took place, the company is still working out how things will work, Korbe said, including when and how to change the signs on the building.

“We’ve always prided ourselves on having what you need when you need it,” she said. “It’s something we were founded on and really believe in. We want to deliver the products our customers need at the right price and have them on hand when you need them. We have a lot of great vendors and suppliers.

“The plan is to transition stores over the next 12 to 15 months,” Korbe said.

This includes rebranding the store and changing its layout to reflect how Bomgaars operates. Internal changes likely won’t begin until early spring, she said.

Pillars of the company

The company has four merchandise “pillars” it focuses on, Korbe said, including Dewalt tools, lawn and garden and other seasonal outdoor products, pet food and livestock, and shoes.

“We have more than those four, but those four, we really strive to have a good assortment and good equipment,” she said. As it transitions over the next year, as Orscheln’s stocks need to be replenished, Bomgaars will bring in its products to replace them. “Our prices are generally quite similar.”

Bomgaars, operated by the Bomgaars family, serves the Midwest, High Plains and Rockies with stores in Iowa, Minnesota, Nebraska, South Dakota, Wyoming, Colorado, Idaho and Kansas.

The 70-year-old company has had a presence in Kansas since 2020, Korbe said, and prior to last week’s action its stores were in Lyons, Hillsboro, Russell, Beloit, Burlington, Norton and Seneca.

The deal that sparked the change

On February 17, 2021, Tractor Supply and Orscheln reached an agreement for Tractor Supply to acquire the small business for approximately $320 million.

However, the FTC, concerned about competition in communities with Orscheln and Tractor Supply stores, ordered Tractor Supply to divest those stores to two stores in 10 states.

Bomgaars was one of two agricultural retailers selected to buy stores during a lengthy bidding process. Buchheit Enterprises Inc. of Illinois acquired 12 locations.

Additionally, Tractor Supply has agreed to sell the Orscheln headquarters and a distribution center in Moberly, Missouri, to Bomgaars for approximately $10 million within 15 months of closing the transaction, according to an earlier statement from Tractor. Supply.

The sale caused Bomgaars to grow almost 70% overnight, from 107 stores to 180, Korbe said.

This makes it the second largest farm store chain in the nation, behind Tractor Supply, which operates more than 2,000 farm stores in every state except Alaska. Orscheln was number two.

Opportunistic growth

“We’ve always prided ourselves on being a company that loved to grow by opportunity,” Korbe said. “When the opportunity arose to enter new consumer markets, we looked at it.”

Kobe expects new stores in Kansas to host large openings in the future, but “the scale and timing of that is yet to be determined.”

The assignment order also contains a 10-year “pre-approval” provision for purchasers. It prohibits them from selling the acquired stores for three years, except to an acquirer who receives prior approval from the FTC. And then, for the next seven years, buyers are required to get pre-approval from the Commission to sell their acquired store to a buyer with another farm store within 60 miles.

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