April 25, 2016 Share

Bass Pro Shops Moving Ahead with Cabela’s Purchase

BPS is preparing to change the outdoor world in an unprecedented way with the rumored Cabela’s purchase.

Bass Pro Shops is preparing a bid for the purchase of Cabela’s. The merger, first rumored in November, would transform the world of hunting and fishing like nothing else before it, as well as affecting the livelihoods of thousands of workers.

Reuters reported that BPS has partnered with Goldman Sach’s private equity firm to provide the financing needed to purchase Cabela’s. While the bid amount and a potential date for the purchase are still unknown, the report said BPS is facing competition from other unnamed buyout firms and has only begun the lengthy process required to buy Cabela’s. Competition is limited because firms are hesitant to purchase brands associated with firearms in the current political and legislative atmosphere, but it still exists.

If the BPS buyout takes place the closure and consolidation of Cabela’s headquarters with Bass Pro’s is likely.

Shares of the company’s stock, however, were not discouraged by the news. Cabela’s stock rose 6.4 percent Tuesday to finish at $52.51. Total market capitalization was put at $3.6 billion, up from the then-total capitalization of $3 billion following the start of rumors in November.

Cabela’s is also exploring selling its credit card business.

Cabela’s was put on the sales path by Elliott Management, an activist investor who holds an 11 percent stake in the company. In October, Elliott Management disclosed its stake percentage in the company and called for it to “explore strategic alternatives.” Cabela’s has since reached out to private equity firms to solicit interest, according to Reuters.

Privately held Bass Pro Shops, founded in 1971, operates 100 stores in the U.S. Publicly traded Cabela’s, founded in 1961, runs 80 stores. No word on what a merger would look like for those stores, particularly the ones that operate near one another.

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