Bass Pro Acquiring Cabela’s for $5.5B
CBJ — Fishing and hunting equipment chain Cabela’s is being acquired by Bass Pro Shops in a sale valued at $5.5 billion that will help the privately held company nearly double its store count in North America.
Cabela’s has struggled with declining sales of apparel and footwear and has reported same-store sales growth in only one quarter in more than three years.
The retailer had been under pressure from activist hedge fund Elliott Associates L.P, which disclosed an 11% stake in October last year, to pursue strategic alternatives.
The combined company will own 184 stores in the United States and Canada.
Cabela’s also agreed to sell its credit card business called “World’s Foremost Bank” to Capital One Financial Corp, which will forge a 10-year partnership with Bass Pro Shops to issue credit cards to Cabela’s customers.
Bass Pro Shops founder and CEO Johnny Morris will continue as CEO and majority shareholder of the combined company, which will remain private. It has head offices in Missouri.
Bass Pro Shops will finance the deal through preferred equity financing commitments of $1.8 billion from Goldman Sachs and $600 milllion Pamplona Capital Management.