Cabela’s merger with Bass Pro Shops to close this month
By Christen Smith
Cabela’s merger with competitor Bass Pro Shops will be finalized Sept. 25, according to regulatory filings. (Photo: Cabela’s/Facebook)
The multi-billion dollar merger between Cabela’s and Bass Pro Shops will close the end of this month, according to a regulatory filing posted last week.
The $5 billion deal between the two outdoor retailers will be finalized Sept. 25, less than a month after the Federal Reserve cleared its last major hurdle: approving the sale of Cabela’s financing arm — World’s Foremost Bank — to the Georgia-based Synovus Financial Corp.
Bass Pro Shops bought Cabela’s in October for $5.5 billion, or $65.50 per share. Later the Missouri-based sporting goods chain restructured the deal for a lower share price of $61.50.
After Cabela’s weak second quarter sales, however, investor analysts cautioned the retailer could be desperate to close the deal, while Bass Pro Shops may see its former competitor’s tumbling stock as a cost-saving opportunity. All eyes turned to the fast-approaching Oct. 3 deadline from the feds to approve the credit sale to Synovus, who will subsequently sell the operation to Capital One, while keeping $1.2 billion in deposits.
Regulators approved the sale Wednesday, sending share prices for Cabela’s surging 14 percent — good news for the outdoor retailer after a long struggle with weak