While recent reports have indicated that the Bass Pro purchase of Cabela’s might be on life support, another company may be stepping in to save the deal.
One of the prime reasons for the earth shaking Bass Pro purchase of Cabela’s announced in the fall of 2016 was so that Bass Pro could obtain the lucrative Cabela’s financial unit, specifically their credit card portfolio. With over two million accounts combining for over $5 billion in loans that produce approximately $500 million in revenue annually, the Cablela’s financial unit is one of the store’s crown jewels.
While Capital One was positioned to take over the Cabela’s financial unit as part of the original deal with Bass Pro, the arrangement ran into problems getting approval from the Federal Trade Commission. For that reason, Capital One dropped out, which left the Bass Pro purchase of Cabela’s in a very precarious position.
However, Synovus Financial Corp just announced that they will step in and purchase the Cabela’s financial unit. They plan on keeping deposits held by the financial unit and then eventually selling the credit card portfolio to Capital One.
If everything goes as planned, this intervention by Synovus could help salvage the deal, which would unite the two largest outdoor retailers in the United States.
The Bass Pro purchase of Cabela’s was supposed to have been completed by the first half of 2017, but the aforementioned delays have prevented that from happening. While things appear to be back on track, the deal must still be completed by October of 2017 under the original terms of the purchase.
Stay tuned for more details on the unification of Bass Pro and Cabela’s as the deal progresses.