In a private deal valued at $5.5 billion, Bass Pro Shops has acquired competitor Cabela’s, the companies announced today.
According to a report in USA Today, there was no immediate word on whether the acquisition would result in any store closures. The deal follows months of speculation about a possible takeover after activist investor Elliott Management called upon Cabela’s to reorganize or consider a sale.
The deal calls for privately-owned Bass Pro Shops to pay $65.50 per share in cash for Cabela's, representing a premium of 19.2% over Friday's closing price.
Bass Pro Shops CEO Johnny Morris will lead the newly combined entity as CEO and will retain majority ownership.
"The story of each of these companies could only have happened in America, made possible by our uniquely American free enterprise system," Morris said in a statement. "We have enormous admiration for Cabela’s, its founders and outfitters, and its loyal base of customers."
Cabela's CEO Tommy Millner said the company's board approved the sale after "a thorough strategic review."
Bass Pro Shops said it plans to maintain Cabela's operations in Sidney and Lincoln, Neb. "and hopes to continue the very favorable connections to those communities and the Cabela’s team members residing there."
For a detailed press release on the transaction issued by BPS this morning, click here.
