Bass Pro Shop to acquire Cabela's for $5.5bn
Outdoor-sports gear seller Bass Pro Shops has acquired Cabela’s Inc. for $5.5bn — $65.50 per share in cash. This acquisition unites two of the biggest competitors in the industry who have built their brands on mega sports stores.
Bass Pro Shop to acquire Cabela's for $5.5bn
“A driving force behind this agreement is the highly complementary business philosophies, product offerings, expertise and geographic footprints of the two businesses. The essence of both Bass Pro Shops and Cabela’s is a deep passion to serve outdoor enthusiasts and support conservation. The combination brings together three of the nation's premier sporting brands: Cabela’s, a leader in hunting; Bass Pro Shops, a leader in fishing; and White River Marine Group, a worldwide leader in boating, which is part of Bass Pro Shops."
The acquisition will most likely occur in the beginning of 2017 after approval from Cabela’s shareholder and regulators.
"Today's announcement marks an exceptional opportunity to bring together three special companies with an abiding love for the outdoors and a passion for serving sportsmen and sportswomen," said Johnny Morris, founder and CEO of Bass Pro Shops, in a statement. "We have enormous admiration for Cabela’s, its founders and outfitters, and its loyal base of customers. 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.”
Morris, Bass Pro Shops founder and majority owner, will serve as the chief executive of the company.
"Cabela’s is pleased to have found the ideal partner in Bass Pro Shops," said Tommy Millner, Cabela’s Chief Executive Officer. "Having undertaken a thorough strategic review, during which we assessed a wide variety of options to maximize value, the Board unanimously concluded that this combination with Bass Pro Shops is the best path forward for Cabela’s, its shareholders, outfitters and customers."
With the joint company, Bass Pro Shops will own more than 180 locations, approximately 40,000 workers and control of more than 20 percent of the $50bn U.S. hunting, camping, and fishing market, according to Stifel analyst Jim Duffy.