Tuesday, October 4, 2016

Bass Pro Shops reels in Cabela's for $4.5 Billion Dollars

Bass Pro Shops has reached a deal to acquire outdoors retail competitor Cabela's and take the company private in a deal valued at $4.5 billion,  the companies said Monday.
The deal unites two outdoor supply superstores aimed at catering to every need of those who hunt, fish, camp or otherwise venture into the wilderness. It was not immediately clear whether the acquisition would result in any store closures, but the companies said in a statement that Springfield, Mo.-based Bass Pro Shops would "celebrate and grow" the Cabela's brand.
The deal comes about 10 months after Sidney, Neb.-based Cabela's effectively put itself up for sale at the urging of hedge fund Elliott Management, which had declared the hunting-and-fishing retailer undervalued and called for the company to consider a sale or reorganization.
Privately held Bass Pro Shops will pay $65.50 per share in cash for Cabela's, representing a premium of 19.2% over Friday's closing price. Cabela's had 68,909,403 shares outstanding as of its disclosure in a corporate filing.
Cabela's shares rose 15% Monday, closing at $63.18.
Long known for large-format destination stores, Cabela's has lost ground to smaller, nimbler competitors and online retailers. Sales at stores open at least a year fell 1.3% in the first half of 2016, compared to a year earlier, according to a securities filing.
The number of purchases at Cabela's stores fell 8.1% during that period, reflecting a drop-off in foot traffic as customers bought less clothing and footwear from the retailer, although hunting sales increased and average revenue per transaction rose 8.2%.
The deal marks a dramatic expansion of the outdoor retailing empire controlled by Bass Pro Shops CEO Johnny Morris, who founded the company in 1972. The billionaire will lead the newly combined entity as CEO and will retain majority ownership.
Bass Pro Shops has about 99 stores and 20,000 employees. Cabela's has about 85 stores and had about 19,700 employees at the end of 2015, according to a securities filing.
Representatives for Cabela's and Bass Pro Shops did not respond to requests seeking comment, questions about potential store closures or interviews with executives.
"The story of each of these companies could only have happened in America, made possible by our uniquely American free enterprise system," Morris said in a statement. "We have enormous admiration for Cabela’s, its founders and outfitters, and its loyal base of customers."
Cabela's CEO Tommy Millner said the company's board had unanimously backed the sale after "a thorough strategic review."
Bass Pro Shops said it plans to maintain Cabela's operations in Sidney and Lincoln, Neb. "and hopes to continue the very favorable connections to those communities and the Cabela’s team members residing there."
The companies said they expect the deal to be approved in the first half of 2017.

29 comments:

Anonymous said...

007 tac buys our pants and hair gel at Bass Pro Shop

Anonymous said...

Cabela's kicks ass!

stash the polski guy said...

stupid asses in congress need to stop mergers and acquisitions. consolidation is a job killer. what is next, gander mountain?

Anonymous said...

When we were kids, "Bass" was a code name
for Blacks

MEGYN KELLY IS A CUNT said...

Not good.
The more competition, the better.

Anonymous said...

007 buys our pre-torn camo hats there too. We couldn't tell you the first thing about tying a hook on a fishing line or hunting, but we sell it pretty good.

Anonymous said...

They must have great fishing bait. Mr bourbon street s mom fishy smelling ass is always hanging around in there

Anonymous said...

Do they sell the Confederate flag?

Anonymous said...

Whole foods looks like the new Bourbon street, more cpd in store than shoppers

Anonymous said...

That's what companies do.

Anonymous said...

7 tact buys all their camo underwear at Bass, no stink, no sweat, no pinch!

Anonymous said...

When I was a young buck,fish was a code name for stinky white women .

Anonymous said...

Here's hoping that Bass doesn't change the animal displays at Cab's. The wolverines are very impressive, although I know a wolverine who claims nobody can trap them, so the "wolverines" on display must be badgers in a costume....

Anonymous said...

monopoly. super.

can one of you libertarian economics twats explain how this is a good thing?

Anonymous said...

I like Big R on 159th Street.

Anonymous said...

Was just thinking of bass pro shops and all the catalogs they used to send me.

Anonymous said...

Bass pro sucks . Gun counter guys in Gurnee act like hard asses. I went in looking at a Marlin 30-30. Approached salesman to ask question about rifle and he acted like I was bothering him with his bad attitude. I walked away, asked service desk to speak to a manager, and told him what happened and said I would be purchasing that rifle at Cabela's due to bad customer service.

Anonymous said...

I would never buy a firearm at bass pro. Sales people are ass holes.

Anonymous said...

Will county is nice.

Anonymous said...

I always buy my official Chris Kyle sniper sunglasses from Bass Pro. They make me look like the kind of badass I always wanted to be, but couldn't due to my low sperm count and my obsession with My Little Pony dolls. I hope the new owners keep stocking them or I will have to become a fireman. Signed, hair gel hotdog.

Gramps said...

Well when I was a young'un, they didn't have jigaboos!! They hadn't been invented yet!! And that was just the way we liked it!!

Anonymous said...

Good call. Indiana even better.

Anonymous said...

There is no monopoly. You can buy guns from Jamal when he pops the trunk.

Anonymous said...

As the only transgender female tac officer on CPD I have been buying their camo-colored tampons for years and shoving them up my ass because I don't have a pussy.

Anonymous said...

I am planning to buy a firearm from Bass Pro and use it blow them away if they are assholes to me.

Mr. SouthSide said...

You mean that having My Little Pony dolls are a bad thing?

Anonymous said...

When I was a young'un we'd find old white hillbilly pecker woods like Gramps and end them

Anonymous said...

About 7-8 yrs ago Cab's cut massive deal with W.Va. to build
a massive store with their own highway infrastructure: they
have their own Exit sign. High-end 4-person ATVs parked outside
front doors: $4 to $5K price tags back then.
Impressive collection of stuffed animals.
(remember seeing the .50 Cal sniper rifle in the high-end gun section)

Anonymous said...

When I was a young'un we'd find old white hillbilly pecker woods like Gramps and end them