Cabela's to be Acquired by Bass Pro Shops (12-Year Chart Inside)

Cabela’s to be Acquired by Bass Pro Shops (12-Year Chart Inside)

Posted October 3, 2016

Photo: Outdoorhub

Bass Pro Shops, the Springfield, Missouri-based outdoor sports retailer, has agreed to buy competitor Cabela’s Inc. for $65.60 a share in cash, valuing the deal at about $5.5 billion.

Sidney, Neb.-based Cabela’s ($CAB) announced the deal Monday, ending a week of speculation. Bass Pro Shops was reportedly the leading bidder to acquire Cabela’s Inc., a deal that would combine the nation’s two largest outdoor gear retailers.

Tommy Millner, Cabela’s CEO, commented:

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.

Immediately prior to closing, Capital One will acquire certain assets and assume certain liabilities of Cabela’s World’s Foremost Bank. The cash proceeds from this transaction will remain with Cabela’s until it is acquired by Bass Pro Shops. Also Capital One will originate and service the Cabela’s CLUB, Cabela’s co-branded credit card, and Bass Pro Shops will maintain a seamless integration between the credit card program and the combined companies’ retail operations and deep customer relationships. (247Wallst)

The acquisition is expected to close in the first half of 2017. The Cabela’s board of directors unanimously approved the transaction, but it is still subject to approval by Cabela’s shareholders and regulatory approval.

Bass Pro Shop, Cabela's

J. Fife

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Cabela’s to be Acquired by Bass Pro Shops (12-Year Chart Inside)

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