If you love Cabela’s, the outdoor superstore that carries hunting, fishing, camping and boating supplies, you might be saddened to know the retailer is being bought by Bass Pro Shop, another great outdoor outfitter. The deal also includes the purchase of White River Marine Group.
Bass Pro Shops to buy Cabela’s for $5.5 billion
In a press release today, Cabela’s announced it expects the $5.5 billion merger to take place in the first half of 2017.
The company said the ‘driving force behind this agreement is the highly complementary business philosophies, product offerings, expertise and geographic footprints of the two businesses,’ and noted each companies’ passion for conservation.
The press release also disclosed that Cabela’s stockholders would receive $65.50 in cash per share, and after acquisition, privately held Bass Pro Shops said it would honor Cabela’s rewards and credit cards.
As of yet, there has been no mention of any layoffs of Cabela’s employees or that any of the 85 locations across the U.S. and Canada would be closed. Approximately 19,000 people are employed by Cabela’s. The founder of Bass Pro Shops, Johnny Morris, reassured customers and employees in an open letter saying, ‘there will be no immediate impact to our stores.’
Clark’s take: How and when the deals will happen
On the radio show, Clark talked about how overstocked we are in terms of retail merchandise available per person in America, and how our changing spending patterns are shaking up the retail environment. ‘We used to shop until we drop, but we don’t do that anymore,’ he said.
However, as a result of the changes and challenges happening in retail, you can expect to find some great deals, especially during the upcoming holiday shopping season.
Clark predicts that Cabela’s private label brand will eventually go on sale as the Cabela’s brand name is taken over by Bass Pro Shops.
‘Right after Christmas season is when the big bargains will start for the Cabela’s store merger,’ he said.
The merger is being financed by Goldman Sachs and Pamplona.