Tractor Supply completes Allivet acquisition to enter vet pharma space

Tennessee-based rural lifestyle superstore Tractor Supply Company closed the acquisition of Allivet, a major US veterinary pharmaceutical industry player.

It’s the company’s latest push into the pet sector as it tries to bring pet care under the ‘Life Out Here’ umbrella, its countryside theme. The purchase will expand the company’s addressable market by $15 billion (€14.5B) to $225 billion (€218B).

Allivet sells a broad range of pet health goods, including relatively niche products like those for thyroid and seizure care, as well as supplements, vaccines and food, making it a relatively effective one-stop shop for veterinary needs for dog, cat and horse owners. The company also has some limited offerings for birds and livestock.

It has 3 warehouses across the US, allowing it to quickly deliver goods to most of the country. The pharmacy offers auto-ship to millions of pet owners and is licensed to operate in all 50 states.

Another benefit for Tractor Supply is that Allivet already has partnerships with businesses like the American Kennel Club and Fetch Pet Insurance.

Not just tractor supplies

The purchase diversifies Tractor Supply’s portfolio of products both by moving deeper into the pet industry and shifting to a higher proportion of online sales.

Tractor Supply operates around 2,270 locations in 49 states, giving it a strong footprint for consumers who enjoy in-person shopping. However, something as routine as ordering prescription medication can be easily done online and has the added benefit of diversifying Tractor Supply’s sales channels.

The company’s 37 million ‘Neighbor’s Club’ loyalty members may soon receive benefits for their pets, though fully integrating the two companies may take time.

While Allivet is privately owned and does not disclose its earnings to the public, Tractor Supply says it expects the acquisition to provide $1 billion (€971M) in revenue at full scale. That’s a big boost for a company that hopes to make around $15 billion (€14.5B) in net sales this financial year.

Pet expansions

This is not the first time Tractor Supply has expanded its pet offerings. The company already owns Petsense, a specialty supply retailer with around 200 stores in 23 states.

Some industry players expect more pet brands to be bought by major retailers and conglomerates in 2025.

Mergers and acquisitions are major drivers of profitability in the pet industry, and some are expecting new growth this year as the global economy continues to recover from the post-pandemic inflationary period and a more corporate-friendly administration takes over in the US.

That said, 2024 had its share of investments, including big moves from German retailer Fressnapf and multiple Nordic companies.