Bass Pro Shop to Buy Cabela’s for a $4.5 Billion Deal

Cabela’s has agreed to the terms that sets Bass Pro Shop to acquire the company for a $4.5 billion deal. The agreement joins the two biggest outdoor superstore that caters to the outdoor sportsman. 

Details of the deal are not yet available and there is no clear indication if there would be any store that would close. However, a statement from the Springfield MO. Bass Pro Office said that the company would “celebrate and grow” with the Cabela’s brand.

The Nebraska based Cabela’s placed itself up for sale about 10 months ago. The sale was prompted by the assessment of hedge fund Elliott Management’s declaration that the outdoor superstore was undervalued. As a result, the firm asked that Cabela’s consider a reorganization or sale.

Cabela’s sales dropped to 1.3% for the first half of the year, losing to smaller competitors and online retailers. The purchases at Cabela’s store fell 8.1% during that period reflecting a drop in foot traffic. The store saw customers buying less clothing and footwear from the store, however hunting sales have increased at 8.2% on the average revenue per transaction.

Outdoor Retail Empire

Bass Pro Shop makes a dramatic expansion with the purchase of Cabela’s and would establish an outdoor retail empire. Bass Pro Shops CEO Johnny Morris founded the company in 1972. The billionaire will now head the merged entity as the CEO and would retain majority ownership of the company.

“The story of each of these companies could only have happened in America, made possible by our uniquely American free enterprise system,” Morris said. “We have enormous admiration for Cabela’s, its founders and outfitters, and its loyal base of customers.”

Cabela’s CEO Tommy Millner meanwhile said that the board after “a thorough strategic review,” has given its unanimous support for the completion of the sale.

Additional details of the deal are still sketchy as representatives from both companies declined to give further comments. Both companies however said that they expect the deal to be completed in the first half of 2017

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