Bass Pro Shops to Buy Cabelas
USAgNet - 10/04/2016
Fishing and hunting equipment chain Cabela's said it agreed to be bought by Bass Pro Shops in a deal valued at $5.5 billion that will help the privately held company nearly double its store count in North America. According to CNBC, the offer of $65.50 per
share is a 19.2 percent premium to Cabela's close on Friday.
Shares of Cabela's jumped nearly 15 percent to $63.00 in early trading, their highest in more than a year. Up to Friday close, they had risen 17 percent since the company said in December it was exploring strategic alternatives.
Cabela's has struggled with declining sales of apparel and footwear and has reported same-store sales growth in only one quarter in more than three years. The retailer had been under pressure from activist hedge fund Elliott Associates L.P, which disclosed an
11.1 percent stake in October last year, to pursue strategic alternatives.
Reuters reported on Sunday that a consortium of Bass Pro Shops, Goldman Sachs Group's private equity arm and Capital One Financial was in the lead to buy the company.
The combined company will own 184 stores in the United States and Canada.