Gander Mountain to go private

St. Paul, Minn. Outdoor apparel and gear retailer Gander Mountain Co. said Monday it plans to become a private company, sending its shares soaring. The company operates 116 stores and three outlet units.

Gander Mountain said that its two largest shareholders, Gratco LLC and Holiday Stationstores, will pay smaller holders of less than 30,000 shares about $5.15 per share, a 35% premium to Friday's close of $3.82. Owners of more than 30,000 shares will retain their shares and not be paid for them. The going-private transaction is expected to close in early 2010.

Gander said its directors decided it would be a disadvantage to remain publicly traded on the Nasdaq Global Market, partly due to the costs associated with regulatory requirements.

Outdoor retailers have suffered amid the recession as consumers hold back on big-ticket items. Gander Mountain finished exiting from the boat, all-terrain-vehicle and power-sports-services categories during its most recent fiscal second quarter, but it still reported a loss in sales.