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The hunt for a buyer is over. Bass Pro Shops has agreed to buy one of its biggest competitors, Cabela's, for $5.5B in cash, or $65.50/share, a 19% premium on Cabela's Friday closing price. Bass Pro Shops secured $2.4B in preferred equity financing, consisting of a $1.8B commitment from Goldman Sachs and a $600M commitment from Pamplona Capital Management, the New York Times reports. The deal also calls for Bass Pro to begin a multiyear partnership with Capital One, under which Capital One will service the Cabela's Club, Cabela's co-branded credit card. Details on how the new venture will handle the union of Cabela's 19,000 employees and Bass Pro Shop's 20,000 were not available.
Cabela's operates about 80 stores, focused in the Northwest. Bass Pro's 100 stores are centered in the Northeast. Both retailers have made serious moves in Texas recently. Cabela's opened its first Houston-area store earlier this year in League City, while Bass Pro Shops has opened locations in Katy and Pearland in recent years. The competitors have also jostled for position in DFW and Central Texas, where both have opened multiple locations since 2000. [NYT]
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