Bass Pro Shops to Acquire Cabela’s

[mahatmakanejeeves]

Source: The Wall Street Journal.

Bass Pro Shops to Acquire Cabela’s

Deal for $4.5 billion in cash; comes as sporting goods industry struggles with tepid sales

By Tess Stynes
[e-mail]
http://twitter.com/TessStynes

Oct. 3, 2016 9:11 a.m. ET

Bass Pro Shops reached a deal to acquire Cabela’s Inc. for about $4.5 billion in cash, combining two of the biggest sellers of outdoor-sports equipment and apparel.

Cabela’s shareholders will receive $65.50 a share, a 19% premium to Friday’s close, in a deal the companies say will combine complementary product lines and domestic geographic markets. The companies valued the deal at $5.5 billion; company-provided deal values often include debt and other items.

Shares of Cabela’s, up 18% this year, rose about 15% to $63.00 in recent premarket trading.

The move comes as the sporting goods industry has been struggling with tepid sales. Cabelas in December had said that it was reviewing its strategic options, including a possible sale, as the outdoor-sports retailer was under pressure from activist investor Elliot Management Corp. Reuters in April had reported that Bass Pro Shops was preparing an offer for Cabelas.


Read more: http://www.wsj.com/articles/bass-pro-shops-to-acquire-cabelas-1475500278

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Sports Authority pulled the plug earlier this year. Most bricks-and-mortar retail operations are hurting, though a few reported better earnings.

Amazon is demolishing everything in its path.

Full disclosure: I've bought stuff from Amazon. I've never bought anything from Cabela's, but ISTR that I bought a Cabela's jacket at a thrift store or yard sale. No, on second thought, it's from Orvis. Same sort of thing.

I joined REI years ago, and I have stuff from L. L. Bean. Neither one of those is publicly traded, but they are in the same industry.

[tonyt53]

1. I just wouldn't label these two businesses as "sporting goods" so much. Just hunting and fishing.

Some of those Cabela's stores have those massive mountains built inside. Fascinating to look at, but it does little to bring in business. A person can only own so much camo clothing too.

[mahatmakanejeeves]

2. "A person can only own so much camo clothing too."

You wouldn't be saying that if you had seen me at a yard sale I hit back in August. They were practically giving it away. I was on foot, and I had to lug home a Disneyworld tote bag full of it (and one other thing).

[Freddie]

3. Cabela's is a tourist attraction

There's one an hour from here, people take their kids to see all the stuff. Restaurants have popped up nearby. Have never been there but people love the place.

[mahatmakanejeeves]

4. There's a giant one, the main one perhaps, next to the Interstate in Nebraska.

I was in a hurry, so I didn't stop. Hastings, Nebraska?

Googling....

Welcome to the Sidney Cabela's!

There used to be a store out of Boston (or was it Peterborough, NH?), Eastern Mountain Supply, that expanded to include retail outlets across the Northeast. I mail-ordered a backpack from them in 1972 that got good reviews in Consumer Reports. Are they still around?

I've also seen a Gander Mountain store in Fredericksburg (the one in Virginia, not Texas), so there are a few companies in this line of retail.

DC-area Hudson Trail Outfitters (HTO), which used to be Hudson Bay Outfitters (HBO) until some other HBO encouraged them to undergo a name change, closed shop a year or two back. In central and southwest Virginia, Blue Ridge Outfitters is alive and well.

[berksdem]

10. If you are in Philly...

I assume you are talking about the Cabelas in Hamburg, PA. I live about 20 minutes from there (grew up in Philly) and you are right - people make trips out of going to Cabelas and they even have people bused in from all over the place. I am an avid fly-fisherman and have been there more than I care to admit.

It is nice and if you are into "people watching" this is the place to go. Trumptards are everywhere along with NRA hats and Ted Nugent t-shirts.

[dbackjon]

5. Cabela's was mail order only for decades

I guess I should've stayed that way


But I hate even more though is that one of those good for nothing venture capitalists have made them sell - those are the real drains on the United States

[cab67]

6. Cabela's actually makes decent outdoor clothing.

Birders such as yours truly wear the same kinds of clothes hunters would in cold weather.

[d_r]

7. In Chattanooga

we have a new cabela's and a new bass pro shop one exit from each other. I wonder how they will handle this. I like both but they have high prices. A lot of good gear besides hunting and fishing at both, fwiw.

[Kathy M]

12. Maybe keep the names as they are now , will just be under same umbrella ? n/t

[d_r]

15. Probably nt

[ileus]

17. Same way here in Bristol, both less than a year old.

[jmowreader]

19. I would think they'd divest themselves of excess stores like Chattanooga's

Gander Mountain may want to expand; if so they'd be the obvious choice.

[Brickbat]

8. I'm really sorry to hear this.

[Kathy M]

13. me too

[modrepub]

9. The Big Get Bigger

I guess we'll see how much debt the new company acquires. If the new company can't make payments then expect a slow death spiral to ensue; cut employee hours, close stores, make less money, repeat.

In my area of the state hunting is nearly impossible due to the number of people living here. Most landowners don't want people on their property unless they know them real well. That leaves most of the die hards making three hour trips upstate to mostly hunted out game lands. I see hunting becoming an expensive hobby once you factor in the gear and other expenses.

[OregonBlue]

11. Cabelas is also very generous. We requested some camping equipment for our school (very tiny)

so the 6th grade teacher could take her class camping. We are a small rural school with lots of low income students. They donated thousands of dollars worth of tents and sleeping bags and camp stoves, etc. Enough for two classes to go camping at a time. The school now has everything they need for truly awesome field trips and all classes (and even parents) are allowed to borrow the equipment.

[ThingsGottaChange]

14. Last time I was at Cabela's

everything I looked at was made in China. And unbelievably overpriced. No thanks....

[dembotoz]

16. cabellas is a destination store,,,,much like a costco if there is only 1 costco in your area

my deer hunter oldest son would sleep there if he could
when it was built they exit for the expressway and roads were rebuilt to accommodate the traffic
I did some xmas shopping for the kid there.
Impressive place. Huge actually.

did find a down jacket in my size in clearance....great deal...good jacket.

been to a couple bass proshop..... not that impressed.
hope bass does not screw the pooch and mess up the store.
not into that kind of stuff, but those who are really seem to like the place

[Crash2Parties]

18. I wonder if the new owners will be less transphobic?

see: blatt v. cabella's

http://time.com/money/4372952/transgender-job-discrimination-lawsuit/