Bass Pro Shops to Acquire Cabela's
October 03 2016 - 9:00AM
Dow Jones News
Bass Pro Shops reached a deal to acquire Cabela's Inc. for about
$4.5 billion in cash, combining two of the biggest sellers of
outdoor-sports equipment and apparel.
Cabela's shareholders will receive $65.50 a share, a 19% premium
to Friday's close, in a deal the companies say will combine
complementary product lines and domestic geographic markets. The
companies valued the deal at $5.5 billion; company-provided deal
values often include debt and other items.
Shares of Cabela's, up 18% this year, rose about 15% to $63.00
in recent premarket trading.
The move comes as the sporting goods industry has been
struggling with tepid sales. Cabelas in December had said 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 had reported that
Bass Pro Shops was preparing an offer for Cabelas.
Privately owned Bass Pro Shops also said it will begin a
multiyear 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, which is expected to close in the first half of next
year, 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.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
October 03, 2016 09:45 ET (13:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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