Bass Pro Buys Cabelas
Bass Pro Shops reached a deal last week to acquire Cabela's Inc. for about $4.5 billion in cash, combining two of the biggest sellers of outdoor-sports equipment and apparel.
The companies say the deal will combine complementary product lines and domestic geographic markets.
The move comes as the sporting goods industry has been struggling with tepid sales. Cabela’s said late last year that it was reviewing its strategic options, including a possible sale, as the outdoor-sports retailer was under pressure from activist investor Elliot Management Corp.
Reuters in April reported that Bass Pro Shops was preparing an offer for Cabela’s.
Privately owned Bass Pro Shops also said it will begin a multi-year partnership with a unit of Capital One Financial Corp. for a Cabela’s co-branded credit card. The companies said their customer-loyalty programs will remain unchanged.
The deal is expected to close in the first half of 2017. It includes Cabela’s 85 specialty retail stores, primarily in the western U.S. and Canada, and Bass Pro Shops’ 99 stores and Tracker Marine Centers located primarily in the eastern part of the U.S. and Canada.
Source: Wall Street Journal