Merger Will Enhance Ability to Serve Outdoor Enthusiasts with Complementary Product Offerings and Geographic Footprints
Cabela’s Shareholders Will Receive $65.50 Per Share in Cash
Bass Pro Shops Entering into Multi-Year Credit Card Partnership with Capital One
Bass Pro Shops and Cabela’s Club Customer Loyalty Programs Remain Unchanged
SPRINGFIELD, Mo. & SIDNEY, Neb. – Bass Pro Shops and Cabela’s Incorporated (NYSE:CAB), two iconic American outdoor companies with similar humble origins, and with a shared goal to better serve those who love the outdoors, today announced that they have entered into a definitive agreement under which Bass Pro Shops will acquire Cabela’s for $65.50 per share in cash, representing an aggregate transaction value of approximately $5.5 billion.
In addition, upon closing Bass Pro Shops will commence a multi-year partnership agreement with Capital One, National Association, a wholly-owned national banking subsidiary of Capital One Financial Corporation (NYSE: COF), under which Capital One will originate and service the Cabela’s CLUB, Cabela’s co-branded credit card, and Bass Pro Shops will maintain a seamless integration between the credit card program and the combined companies’ retail operations and deep customer relationships. All Cabela’s CLUB points and Bass Pro Shops Outdoor Rewards points will be unaffected by the transactions and customers can continue to use their credit cards as they were prior to the transaction. Capital One intends to continue to operate the Cabela’s CLUB servicing center in Lincoln, Nebraska.
A driving force behind this agreement is the highly complementary business philosophies, product offerings, expertise and geographic footprints of the two businesses. The essence of both Bass Pro Shops and Cabela’s is a deep passion to serve outdoor enthusiasts and support conservation. The combination brings together three of the nation’s premier sporting brands: Cabela’s, a leader in hunting; Bass Pro Shops, a leader in fishing; and White River Marine Group, a worldwide leader in boating, which is part of Bass Pro Shops.
Bass Pro Shops, Cabela’s and White River Marine Group represent the best of American entrepreneurship, innovation and devotion to customers. The combined companies will strive to provide a remarkably enhanced experience for customers, increased opportunities for team members and greater support for conservation activities.
Tags: Bass Pro Shop, Cabela's
Any idea how this effects metro areas serviced by both Cabela’s and Bass Pro Shop?
That’s the big question so far. It appears as though there aren’ too many of those markets. Personally I think it will depend on the traffic at each store within each market so it will likely be an individual determination.
Most likely, the new owners consolidate the stores after a 6 month or so period of data collection and inventory assessment and rationalization. The better performing (or company owned real estate store) will survive under the Bass Pro brand and the other will be closed and the stores returned to lessors or sold. Big box is big box. Just change the sign. The more specialized 150,000 gallon fish tank and waterfall “destination” stores will be the survivors as they’ll be harder to unload.
Stores in close proximity will cannibalize each other and will be culled. Stores on opposite ends of town in larger markets (DFW, ATL) that can both turn profits will survive.
I agree, big box is big box.
However, I’m kinda partial to Cabela’s. When I’m looking for that shooting “widget” or quick ammo purchase, Cabela’s seems to have what I’m looking for. Cabela’s also give “mil” discounts too while I believe Bass Pro does not. When I’m out west, I enjoy visiting Sportsman Warehouse. Take a gander sometime. http://www.sportsmanswarehouse.com/
The OKC Bass Pro gives a mil discount. The OKC Cabela’s has a far superior shooting/ ammo/ reloading/ gun and parts selection to the OKC Bass Pro. It makes me sick thinking the Cabela’s we just got could go away.
Random thought… with all the camo these places carry, I always kind of hoped they’d incorporate a small military “pro shop” with a few uniform items for us reservists not near large PXs.
Just wishful thinking probably…
aafes.com
BassPro carries junk. It’s like some Chinese factory and Cabelas is nice, quality stuff. This sucks.
Cabela’s has a house brand that’s actually quality, sorta like REI. Hopefully that’s retained in some way.
Either way, internet sales are crushing brick and mortar in the shooting industry.
As an employee of the worlds foremost outfitter. We have a slight idea that nothing is going to happen that is huge. Other then the name change kinda a name change. Cabela’s branded products have a huge following along with a great warrantee. So what we are thinking that bass pro will do is change the name to Cabela’s by bass pro. People love the brand and the customer service. But I will say this. It will be nice to go from a public company to a private company. They are talking of “keeping the distinction” stores and the lone stores. Like the ones were there is no bass pro or a store that out performs a a bass pro. But most bass pros are a little bit of a distance from a Cabela’s.
Now on to the. Cabela’s credit cards. We have heard rumors that the the interest rate will no longer be a fixed interest rate in store. But your point will carry over to both stores. Which would be nice. But since Cabela’s will no longer own the bank that does the Cabela’s card and basspro won’t either who the heck knows.
I’ve never been a fan of Bass Pro. There’s one a couple of miles from my house, but everything is much more expensive. And, when I have bought Red Head clothing on sale, it hasn’t held up even to light use.
On the other hand, i’m wearing a Cabela’s safari jacket right now and its held up great!
I’m afraid Bass Pro is going to ruin Cabela’s as we know it.
**THIS*** unfortunately….
I agree. I do not find this good news in any way, shape or form. Bass Pro will do to Cabelas what Adobe did to Macromedia.
and what Sears did to Lands End.
Cabela’s will be keeping their brand. It will just be labeled as Cabela’s by bass pro.
Maybe it will be like the buyout of Mountain Hardwear by Columbia–a larger but inferior company buying out a smaller high quality company and leaving it as it’s own brand.
I’m hoping(more like wishful dreaming) that this buyout will bring prices down at Cabela’s. The two located here in the PNW are famous for outrageous prices on everything from optics, knives, clothing, guns and especially ammo! Most any kind of ammo is significantly cheaper from the local gun stores.
I haven’t purchased anything from Cabela’s in years and last I did, it was on clearance or from the bargain cave.
There are many gun shops around here that I’d prefer to give my money to and their service and pricing is ALWAYS better than Cabela’s. I’m hoping the move to private ownership focuses more on the clientele and the employees than the shareholders and board of directors. We shall see!