Fishing and hunting gear can be very expensive and heavily sought after. Across the United States, Bass Pro Shops and Cabela’s are two of the most popular chains for buying fishing and hunting gear. Soon, they’ll join together as one superpower.
In a move that is definitely going to raise some eyebrows, Bass Pro Shops has agreed to a deal to buy Cabela’s Inc for $5.5 billion. The two are currently the top two hunting and fishing stores across the United States.
Bass Pro Shops currently has 99 stores in the United States, most of which are in the Northeast. Cabela’s, meanwhile, has 85 stores, mostly in the Northwest. With the two joining forces, that’ll give the company 184 stores across the United States.
While Bass Pro Shops are known mostly for gear needed to go hunting and fishing, Cabela’s is both similar and different. Cabela’s focused a little more on taxidermy services and according to Reuters, a “museum quality experience.”
Nearly a year ago, hedge fund Elliott Management bought an 11.1% stake in Cabela’s and subsequently called for a sale. Two months after that announcement, Cabela’s said it would try and work out other situations. At the end of the day, Elliott could make $419.2 million on the deal, double what it paid nearly a year ago for its 11.1% stake.
Johnny Morris, who founded Bass Pro Shops out of his dad’s liquor store in the 1970s, thinks this will give his company a one-stop shop for all hunting and fishing needs. Morris will take over as the CEO of the combined company.
Also in the deal, Cabela’s is going to sell its credit card business, known as “World’s Foremost Bank” to Capital One. Capital One will then begin a ten-year deal with Bass Pro Shops for credit cards for Cabela’s customers.
Ultimately, it’s a massive deal for Bass Pro Shops and solidifies their status as the top fishing and hunting store in the United States from coast to coast.
[Reuters]
