Outdoor equipment retailer Bass Pro Shops has announced its acquisition of Cabela’s Incorporated.
The $5.5 billion deal, which will pay $65.50 per share for Cabela’s shareholders, will bring together three well-known sporting brands: Cabela’s, a leader in hunting; Bass Pro Shops, a leader in fishing; and White River Marine Group, a leader in boating, which operates as part of Bass Pro.
"Today's announcement marks an exceptional opportunity to bring together three special companies with an abiding love for the outdoors and a passion for serving sportsmen and sportswomen," said Johnny Morris, founder and CEO of Bass Pro Shops, in a release announcing the acquisition. "We have enormous admiration for Cabela’s, its founders and outfitters, and its loyal base of customers. We look forward to continuing to celebrate and grow the Cabela’s brand alongside Bass Pro Shops and White River as one unified outdoor family.”
Following the closing of the transaction, Bass Pro Shops said it “intends to celebrate and grow the Cabela’s brand.” The company added that it intends to continue to maintain important bases of operations for Cabela’s in Sidney and Lincoln, Nebraska. Morris will continue as CEO and majority shareholder of the new entity.
"Cabela’s is pleased to have found the ideal partner in Bass Pro Shops," said Tommy Millner, Cabela’s chief executive officer. "Having undertaken a thorough strategic review, during which we assessed a wide variety of options to maximize value, the Board unanimously concluded that this combination with Bass Pro Shops is the best path forward for Cabela’s, its shareholders, outfitters and customers. In addition to providing significant immediate value to our shareholders, this partnership provides a unique platform from which our brand will be extremely well positioned to continue to serve outdoor enthusiasts worldwide for generations to come."
The transaction is expected to close in the first half of 2017. It will be completed through a cash merger and is subject to approval by Cabela’s shareholders, as well as regulatory approvals and other customary closing conditions.