Bass Pro Shops lands rival Cabela’s for $5.5 billion
RICHMOND, Va. — Bass Pro Shops announced Monday that the company will acquire Cabela’s, in a transaction expected to close in the first half of 2017, pending regulatory approvals.
The merger includes the boating company White River Marine Group, which is part of Bass Pro Shops.
Bass Pro Shops will acquire Cabela’s for $65.50 per share in cash, representing an aggregate transaction value of approximately $5.5 billion.
Bass Pro Shops will commence a multi-year partnership agreement with Capital One, to service the Cabela’s CLUB, Cabela’s co-branded credit card.
All Cabela’s CLUB points and Bass Pro Shops Outdoor Rewards points will be unaffected by the transactions and customers can continue to use their credit cards as they were prior to the transaction.
Capital One intends to continue to operate the Cabela’s CLUB servicing center in Lincoln, Nebraska.
“A driving force behind this agreement is the highly complementary business philosophies, product offerings, expertise and geographic footprints of the two businesses,” wrote a BassPro spokesperson, via press release. “The essence of both Bass Pro Shops and Cabela’s is a deep passion to serve outdoor enthusiasts and support conservation.”
Both shops were established within 11 years of one another.
Cabela’s, was founded in 1961 and opened locations primarily west of the Mississippi River, and Canada. There 85 Cabela’s which employ a total of around 19,000 workers.
Cabela’s opened its first storefront in Richmond, in Short Pump, in 2016.
Bass Pro Shop was founded in 1972, and primarily has shops east of the Mississippi River. There are 99 shops with approximately 20,000 team members.
Bass Pro Shops will honor Cabela’s CLUB Loyalty Rewards program and possibly expand the program in the combined company.
Bass Pro Shops Founder and CEO Johnny Morris will continue as CEO and majority shareholder of the new entity, which will remain a private company with a continuing long-term view of supporting the industry and conservation.
“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. “The story of each of these companies could only have happened in America, made possible by our uniquely American free enterprise system.”
“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.”
Bass Pro Shops secured preferred equity financing from the Merchant Banking Division of Goldman Sachs and Pamplona to facilitate the transaction. Goldman Sachs has committed $1.8 billion and Pamplona has committed $600 million for a total preferred financing commitment of $2.4 billion.
The transaction, which is expected to close in the first half of 2017, 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.