Bass Pro Shops and Cabela’s Incorporated have entered into a definitive agreement under which Bass Pro Shops will acquire Cabela’s for $65.50 per share in cash, representing an aggregate transaction value of approximately $5.5 billion.
The outdoor merchandise retailers noted that both companies have highly complementary business philosophies, product offerings, expertise and geographic footprints, with the goal of serving outdoor enthusiasts.
Cabela’s operates 85 specialty retail stores, primarily in the western U.S. and Canada, as well as a catalog business and e-commerce operations. Bass Pro Shops has 99 stores located primarily in the eastern part of the U.S. and Canada.
“Today’s announcement marks an exceptional opportunity to bring together 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.
“Cabela’s is pleased to have found the ideal partner in Bass Pro Shops,” said Tommy Millner, Cabela’s CEO. “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.”
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.