Bass Pro Shops to acquire rival in $5.5 billion deal

Bass Pro Shops has agreed to acquire Cabela’s in a deal that will allow the privately held Bass Pro to nearly double its store count.



Bass Pro plans to purchase Cabela’s for about $65.50 a share in cash, which represents a 19% premium over Friday’s closing price. The agreement will create an outdoor retail powerhouse that specializes in fishing, hunting and boating merchandise. Both companies are known for their elaborate, wilderness-themed store interiors.



Cabela's has been under pressure from activist hedge fund Elliott Associates, which has an 11.1% stake in the company, to pursue strategic alternatives. The retailer operates 85 stores, primarily in the western U.S. and Canada.



Bass Pro operates 99 stores, located primarily in the eastern part of the U.S. and Canada. 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.”



In a statement, Bass Pro said it intends to celebrate and grow the Cabela’s brand. It also said it plans to continue to maintain important bases of operations in Cabela’s current home state of Nebraska, specifically in the towns of Sidney and Lincoln.



"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.”