Bass Pro Shops is buying out its biggest competitor, Cabela’s. The deal is said to be an all-cash affair valued at $5.5 billion.
Cabela stockholders will be paid a reported $65.50 per share in cash.
Bass Pro Shops founder and CEO Johnny Morris had this to say in a lengthy open letter to his employees:
This morning it is with tremendous pride and humility that I share with you the great news that Bass Pro Shops and Cabela's have agreed to combine our two legendary brands to create a truly premier retailer in outdoor sporting goods. This merger of resources, experience and passion for the outdoors represents a unique opportunity for both organizations and their respective team members.
Cabela’s focuses more on hunting—while Bass Pro Shops mainly cater to anglers. Morris called it “a remarkable strategic fit.”
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Cabela's target audience aren’t the only thing that make it a fit, though. Cabela’s has been struggling.
CNBC noted that the company has experienced “declining sales of apparel and footwear and has reported same-store sales growth in only one quarter in more than three years.”
Once the deal is complete, the merged company will own and operate 184 stores in the United States and Canada.
In an FAQ, Bass Pro Shops said there would be “no immediate impact to our stores.” The deal is expected to close in the first half of 2017, and the companies will operate independently until that time.
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