Bass Pro Shops and Cabela's To Merge in $5.5 Billion Deal


Posted by Brent Hart on Oct 10, 2016 in News

Bass Pro Shops and Cabela's To Merge in $5.5 Billion Deal

Merger Will Enhance Bass Pro’s Geographic Footprint
October 3, 2016

Bass Pro Shops will acquire Cabela’s for $5.5 billion under a deal that will combine two major outdoor apparel and equipment retailers. 

The two longtime competitors have complementary business philosophies, product offerings and expertise, but diverse geographic footprints with little overlap. 

Cabela’s operates 85 specialty retail stores, primarily in the western U.S. and Canada. Bass Pro Shops operates 99 stores primarily in the eastern part of the U.S. and Canada. 

"Cabela’s is pleased to have found the ideal partner in Bass Pro Shops," said Tommy Millner, Cabela’s CEO. "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.” 

Bass Pro Shops intends to continue to maintain Cabela’s bases of operations in Sidney and Lincoln, Nebraska and hopes to continue the very favorable connections to those communities and the Cabela’s team members residing there. 

Bass Pro Shops founder and CEO Johnny Morris will continue as CEO and majority shareholder of the new entity, which will remain a private company.

Bass Pro Shops has secured preferred equity financing from the Merchant Banking Division of Goldman Sachs and Pamplona to facilitate the transaction. Goldman Sachs has committed $1.8 billion and Pamplona has committed $600 million for a total preferred financing commitment of $2.4 billion. 

The transaction is expected to close in the first half of 2017.