American fishing and hunting outdoor retail chain Bass Pro Shops has reached a deal to acquire its biggest competitor Cabela’s after months of speculation.
The deal is said to be worth approximately $5.5billion, with Bass Pro Shops will pay $65.50 per share in cash, and is expected to be approved by early 2017.
The acquisition further expands the empire of one of the fishing industry’s most powerful and influential figures, Johnny Morris, who founded Bass Pro Shops in 1972.
Johnny claims that this deal will help to ‘celebrate and grow’ the Cabela’s brand, rather than threaten it.
“The story of each of these companies could only have happened in America, made possible by our uniquely American free enterprise system,” Johnny 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 had unanimously backed the sale after "a thorough strategic review."
GTW understands that Bass Pro plans to maintain Sidney and Lincoln, Nebraska as Cabela’s strategic headquarters.
The deal in numbers
- $5.5billion - Estimated cost
- 10 months - The length of time Cabela’s was ‘for sale’
- Sales decrease at Cabela’s stores in first half of 2016
- 85 - Cabela’s stores currently exist in North America
- 19,700 - Cabela’s employees at the end of 2015