Bass Pro agrees to $5.5 billion acquisition of Cabela’s (Updated)

Updated Oct. 3 at 12:15 p.m.

Bass Pro Shops has agreed to acquire Cabela’s Inc. for $5.5 billion, bringing together two of the largest outdoor-sports retailers and marking a victory for an activist investor that had been pressuring Cabela’s to sell.

The offer of $65.50 a share in cash represents a 19 percent premium to Cabela’s most recent closing price, the companies said Monday in a statement.

Springfield-based Bass Pro outbid private equity firm Sycamore Partners to secure the deal, people familiar with the matter told Bloomberg.

Sydney, Neb.-based Cabela’s, which has been under pressure from activist investor Elliott Associates to pursue a sale, began a strategic review of its businesses in December. Revenue and profit growth had sputtered as a surge in gun sales abated, and the company said in October of last year that “significant weakness” in its fall apparel and footwear contributed to a disappointing third quarter. Less than a week later, Elliott disclosed an 11 percent stake and said it would push for a shakeup.

Read more: Bloomberg, St. Louis Post-Dispatch

 

Updated Oct. 3 at 12:15 p.m.

This story and its headline were updated to reflect confirmation of the acquisition and purchase price. When a previous version of the story was published, Bass Pro and Cabela’s were said to be nearing a deal.


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