After months of rumors and speculation, it is official: Bass Pro Buys Cabela's.
After nearly a year of strategic talk, it is official: two of the biggest names in the outdoor world are becoming one company. Bass Pro Shops and Cabela's, iconic brands and longtime competitors, will be merged as Bass Pro buys Cabela's. Each of these brands has a long history and big following in the hunting, fishing, shooting and camping communities. Cabela's was founded in 1961 and Bass Pro Shops in 1972.
Bloomberg reports that the deal is worth $5.5 billion and that Capital One Financial Corp. will be acquiring the Cabela's credit card portfolio, which sums up to $5.2 billion. This is an important part of the deal: according to Bloomberg, it includes 1.9 million active accounts with an average balance of $2,301. The article also states that Bass Pro beat out private equity bidder Sycamore Partners for the deal. In the short term, Cabela's stock price has already begun to rise as the news breaks.
It's unknown what impact, if any, this will have on existing Cabela's stores. The brand had been stagnant over the past several years, and investors began to pressure them into selling the business. The Bloomberg article references losses in categories such as footwear and clothing as a big part of the declining profits.
We're curious to see what happens next.