Bass Pro Shops Shocks Industry in Purchase of Cabela’s for 5.5 Billion Dollars
Anybody in wilderness retail will recognize the brand names Bass Pro and Cabela’s, whether buying hunting, camping or other outdoorsman equipment these rivals are some of the biggest in the industry. Now, in a new acquisition, Bass Pro Shops has announced that they will be purchasing Cabela’s for 5.5 billion dollars, or roughly 65.50 dollars a share.
These two retailers announced their news on Monday, October 3rd, 2016, and the deal is to be finalized at the beginning of 2017. Bass Pro is not only purchasing a rival but is also looking into a new credit card deal for their chain. There have been talks that Bass Pro and a Capital One subsidiary are going into business on a store card.
The two financial brokers in this deal are Guggenheim Securities for Cabela’s and JPMorgan for Bass Pro Shops. This partnership is an agreement that will be talked about decades from now as being one of the largest purchases in recreation retail. A press release stated that these two companies are both classic American outdoor retailers that share the same view for operations and their future.
Also, Bass Pro mentioned that they would begin their partnership with Capital One, National Association, which will serve as the card for Cabela’s as well as Bass Pro. This acquisition is a partnership that is expected to span over the next several years.
Bass Pro and Cabela’s are approaching the future with the same outlook and goals. These two chains have only wanted to serve the American people their outdoor goods as well as supporting conservation efforts. These two companies strive to exceed customer service and want consumers to have memorable experiences when inside their retail stores.
The Bass Pro and Cabela’s deal will not affect consumers all that much, as both chains will continue to serve their customers. This partnership is seen as an ideal partnership for the two companies and will prove to be successful in the future. This business deal is a positive move for both companies, and nature enthusiasts are excited to see what benefits this will afford them in the future.