That was a short-lived mystery.
After some very brief speculation, it seems that Bass Pro Shops will be the buyer for Cabela’s in a deal that will double Bass’ store count for the discount price of $5.5 billion (about $65.50 per share — a 19 percent premium over Friday’s closing price). Bass and Cabela’s have a similar design aesthetic when it comes to stores: heavy wilderness themes to better display their array of fishing, hunting, hiking, boating and camping merchandise.
The sales comes as activist hedge investors with an 11.1 percent stake in the company have been lobbying heavily for the firm to pursue other strategic alternatives as profits generated from their retail sales have slipped considerably over the last several years.
There are currently 85 Cabela’s stores, primarily in the western U.S. and Canada — while Bass Pro operates 99 stores, mostly in the Eastern U.S. and Canada. Bass CEO Johnny Morris will continue as chief executive and majority shareholder of the combined company, which will be privately held.
“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 Morris. “The story of each of these companies could only have happened in America, made possible by our uniquely American free enterprise system.”
Bass further noted in its statement that its goal is to honor and expand Cabela’s brand.
“Cabela’s is pleased to have found the ideal partner in Bass Pro Shops,” said Tommy Millner, CEO, Cabela’s. “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.”
