Hail to the King!
By Luigi De Rose
And Sold! Bass Pro Shop’s acquisition of Cabela’s has finally occurred with a staggering $5.5 billion (US) transaction.
Under pressure for lagging sales especially in its foot ware and apparel departments Cabela’s was actively looking for a buyer. An offer of $65.50 per share is a 19.2 percent premium to Cabela's close on Friday making the takeover very appealing and lucrative for shareholders. Its stock has jumped 11.1 percent from this time last year.
This move has vaulted Bass Pro Shop to hunting and fishing retail supremacy. The combined company will have 184 stores in America and Canada. The agreement between Cabela’s and Bass Pro Shops is expected to close in the first half of 2017.
For the outdoor industry it might be boom or bust. For the companies lucky to grab shelf space its brand will be showcased to outdoor enthusiasts throughout the continent. Being on the outside looking in can spell doom particularly for start-up or smaller companies. Even popular regional brands will now have a more difficult task to catch the eye of Bass Pro Shop’s buyers. Many insiders forecast that the future will see more generic store brand lures which will be a detriment to the industry as a whole. As this occurs, competition will likely be more feverish for anyone who wants to slay the beast.