Bass Pro Shops is expected to acquire Cabela's in an estimated $5.5 billion deal, according to a press release issued Monday morning.
Sporting goods retailer Bass Pro Shops has entered into an agreement to buy Cabela's Inc for $65.50 per share in cash, in a deal valued at around $5.5bn.
Many credit card issuers were eager to team up with Cabela's after the retailer, which is based in Sidney, Nebraska, said in December it was exploring strategic alternatives.
"The prospect of bringing together our time-tested, iconic outdoor brands: Cabela's - a leader in hunting, Bass Pro Shops - a leader in fishing, and White River Marine Group [part of Bass Pro] - a worldwide leader in boating, is very exciting!" Bass Pro Shops Founder and CEO Johnny Morris will be CEO and majority shareholder of the resulting, private company. Right before the closing of the transaction, Capital One will acquire some assets and liabilities of Cabela's World's Foremost Bank; the cash from this transaction will stay on Cabela's balance sheet until it's acquired by Bass Pro Shops.
Cabela's has also agreed to sell its credit card business to Capital One Financial Corporation, which is partnering with Bass Pro Shops to offer credit cards to Cabela's customers.
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The merger is set to create a national wilderness conglomerate with over 180 locations and about 40,000 employees, and the newly combined company would control more than 20% of the USA hunting, camping, and fishing market, an industry worth $50 billion, according to the Wall Street Journal . It now has 85 retail stores primarily in the western USA and Canada. In addition, Bass Pro will honor Cabela's rewards cards and credit cards.
Word's been out that for quite a while that Sidney, Nebraska, -based Cabela's, billed as "America's foremost" outdoor outfitter, has not been doing well, or has been poorly managed.
The deal, first reported by Reuters, will combine Cabela's 85 stores, which have a stronger U.S. Northwest presence, with Bass Pro's roughly 100 stores that are concentrated in the U.S. Southeast.
Bass Pro Shops has stores located in Spanish Fort, Leeds, and Prattville.