SPRINGFIELD, MO—Bass Pro Shops is acquiring rival outdoor products retailer Cabela's Inc. for approximately $5.5 billion in cash, the two companies said Monday. Cabela's said this past December that it was exploring a possible sale; at that time, Bloomberg Business reported that Bass Pro Shops was working with JPMorgan Chase & Co. to help explore a bid for its competitor.
The $65.50 per share that Bass Pro Shops will pay represents a 19% premium on the Friday closing price of Cabela's stock. The buyer has obtained $2.4 billion in preferred equity financing from Goldman Sachs' merchant banking division and Pamplona Capital Management.
When the acquisition closes, Bass Pro Shops will commence a multi-year partnership agreement with Capital One on the Cabela's CLUB co-branded credit card. Capital One plans to continue operating the Cabela's CLUB servicing center in Lincoln, NE. The deal is expected to be finalized in the first half of 2017.
In a joint statement, the companies said the complementary business models, product lines and geographic footprints of the two operations was a driving force behind the acquisition. “The story of each of these companies could only have happened in America, made possible by our uniquely American free enterprise system,” says Bass Pro Shops CEO Johnny Morris, who founded the company in 1972 and six years later founded White River Marine Group.
Morris says that the Bass Pro management team has “enormous admiration for Cabela's, its founders and outfitters, and its loyal base of customers. We look forward to continuing to celebrate and grow the Cabela's brand alongside Bass Pro Shops and White River as one unified outdoor family.” At Cabela's, CEO Tommy Millner says, “”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.”
Established in 1961 by Dick, Mary and Jim Cabela and headquartered in Sidney, NE, Cabela's employs more than 19,000 and operates 85 specialty retail stores, primarily in the western US and Canada, while also maintaining multi-channel operations. Bass Pro operates 99 stores and Tracker Marine Centers located primarily in the eastern US as well as Canada.
J.P. Morgan served as exclusive financial advisor to Bass Pro Shops and Latham & Watkins served as Bass Pro Shops' legal counsel, with expert assistance from O'Melveny & Myers. Goldman Sachs also served as advisor to Bass Pro Shops on the bank transaction, and Morrison & Foerster served as legal counsel. BofA Merrill Lynch, Wells Fargo Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets, UBS Securities LLC and Goldman Sachs are providing debt financing to support the transaction.
Guggenheim Securities served as exclusive financial advisor to Cabela's and Sidley Austin LLP and Koley Jessen PC, LLO served as Cabela's legal counsel. For Capital One, the Kessler Group and Credit Suisse acted as financial advisers, and Wachtell, Lipton, Rosen & Katz and Chapman and Cutler acted as legal advisers.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in New York City. Learn more.
SPRINGFIELD, MO—Bass Pro Shops is acquiring rival outdoor products retailer
The $65.50 per share that Bass Pro Shops will pay represents a 19% premium on the Friday closing price of Cabela's stock. The buyer has obtained $2.4 billion in preferred equity financing from
When the acquisition closes, Bass Pro Shops will commence a multi-year partnership agreement with
In a joint statement, the companies said the complementary business models, product lines and geographic footprints of the two operations was a driving force behind the acquisition. “The story of each of these companies could only have happened in America, made possible by our uniquely American free enterprise system,” says Bass Pro Shops CEO Johnny Morris, who founded the company in 1972 and six years later founded White River Marine Group.
Morris says that the Bass Pro management team has “enormous admiration for Cabela's, its founders and outfitters, and its loyal base of customers. We look forward to continuing to celebrate and grow the Cabela's brand alongside Bass Pro Shops and White River as one unified outdoor family.” At Cabela's, CEO Tommy Millner says, “”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.”
Established in 1961 by Dick, Mary and Jim Cabela and headquartered in Sidney, NE, Cabela's employs more than 19,000 and operates 85 specialty retail stores, primarily in the western US and Canada, while also maintaining multi-channel operations. Bass Pro operates 99 stores and Tracker Marine Centers located primarily in the eastern US as well as Canada.
J.P. Morgan served as exclusive financial advisor to Bass Pro Shops and
Guggenheim Securities served as exclusive financial advisor to Cabela's and
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in
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