Vista Outdoor: Cabela’s-Bass Pro merger spurring uncertainty

By Christen Smith

Vista Outdoor told investors last week the complexities of Bass Pro Shops acquiring Cabela’s leaves some uncertainty in its wake, but stopped short of tying the merger to the company’s dismal third quarter results.
CEO Chris Metz said Thursday the acquisition spurred “a little bit of contraction” in sales during Vista’s third quarter ending Dec. 31.
“They’ve got a challenging merger on their hands,” he said. “They are working as diligently as they can to make one plus one equals three.”
Bass Pro finalized a $5 billion deal to buy Nebraska-based Cabela’s in September. Details regarding how the retailer will consolidate its administrative workforce at Bass Pro’s Missouri headquarters remain scarce, though CEO Johnny Morris has encouraged former Cabela’s executives to help fund severance packages for the hundreds of employees on the verge of unemployment. So far, none of the 89 Cabela’s stores will close.
“The flipside of that (merger) is for folks like us that serve them it just a period of uncertainty and not quite the order pattern we’re used to,” Metz said.
Vista owns more than three dozen companies in firearms, ammunition and shooting accessories, including Savage Arms, Stevens, Federal Premium, Speer and American Eagle. It also holds brands in the outdoor lifestyle market.
After three “challenging” quarters,

Source: Guns.com