[BREAKING] BASS PRO REACHES AGREEMENT TO PURCHASE CABELA’S FOR $5.5B

By George

Bass Pro Shops has reached a deal to acquire outdoors retail competitor Cabela’s and take the company private in a deal valued at $5.5 billion, the companies said Monday.

It was not immediately clear whether the acquisition would result in any store closures, but the companies said in a statement that Springfield, Mo.-based Bass Pro Shops would “celebrate and grow” the Cabela’s brand.

The deal comes about 10 months after Sidney, Neb.-based Cabela’s effectively put itself up for sale at the urging of hedge fund Elliott Management, which had declared the hunting-and-fishing retailer undervalued and called for the company to consider a sale or reorganization.

Privately held Bass Pro Shops will pay $65.50 per share in cash for Cabela’s, representing a premium of 19.2% over Friday’s closing price.

Cabela’s shares rose 14.7% to $62.99 in pre-market trading Monday.

Long known for large-format destination stores, Cabela’s has lost ground to smaller, nimbler competitors and online retailers. Sales at stores open at least a year fell 1.3% in the first half of 2016, compared to a year earlier, according to a securities filing.

The number of purchases at Cabela’s stores fell 8.1% during that period, reflecting a drop-off in foot traffic as customers bought less …Read the Rest

Source:: Patriot Outdoor News