Bass Pro Shops To Buy Rival Cabela's For $5.5 Billion
- Author: Darren Santiago Oct 05, 2016,
Oct 05, 2016, 6:14
The transaction will bring together Cabela's, Bass Pro Shops and Bass-Pro owned boating company White River Marine Group. Cabela's stores have a distinctive rustic decor featuring displays of stuffed bears, deer, elk and moose.
The deal would unite two of the country's largest hunting and fishing stores and likely face an antitrust examination. "We have enormous admiration for Cabela's, its founders and outfitters, and its loyal base of customers".
Cabela's, which is headquartered in Sidney, Nebraska, operates dozens of stores spread somewhat evenly throughout the United States and Canada. Today, Cabela's has over 19,000 "outfitters" operating 85 specialty retail stores, primarily in the western USA and Canada.
The deal marries Cabela's 19,000 employees with Bass Pro Shop's 20,000, and adds 85 Cabela's stores to Bass Pro Shops' 99.
Raymond Burns, president of the Rogers-Lowell Area Chamber of Commerce, said he doesn't know the sales numbers but agreed it has been a "strong store".
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Monday: Bass Pro Shops announces $5.5 billion deal to buy Cabela's; Capital One will take over credit card operations. "We look forward to continuing to celebrate and grow the Cabela's brand alongside Bass Pro Shops and White River as one unified outdoor family". Cabela's said on December 1 that it was exploring strategic alternatives. Cabela's shares rose 14.7 percent to $62.99 in pre-market trading Monday.
A sale of the Cabela's has been a distinct possibility ever since the company announced a review of its strategic options last December, but many in Sidney weren't ready to believe it could happen.
The transaction, which is expected to close in the first half of 2017, will be completed through a cash merger and is subject to approval by Cabela's shareholders, as well as regulatory approvals and other customary closing conditions. There also was pressure from investment firm Elliott Management Corp., which revealed in a U.S. Securities and Exchange Commission filing last October that it held an 11.1 percent stake in the company and meant to push for changes.
All Cabela's CLUB points and Bass Pro Shops Outdoor Rewards points will be unaffected by the transactions, according to a news release.
"Cabela's is pleased to have found the ideal partner in Bass Pro Shops", said Tommy Millner, Cabela's Chief Executive Officer.