Bass Pro Shops to acquire Cabela’s for $5.5B

Outdoor gear company Bass Pro Shops announced it will acquire Cabela’s for $5.5 billion.

“The story of each of these companies could only have happened in America, made possible by our uniquely American free enterprise system,” said Jonny Morris, founder and CEO of Bass Pro Shops. “We have enormous admiration for Cabela’s, its founders and outfitters, and its loyal base of customers.”

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A spokesman from Bass Pro Shops said until Monday’s $5.5 billion acquisition of Cabela’s is finalized, they will continue to operate as two companies.

“As of today, we cannot make comments as it relates to the pending transaction with Cabela’s,” said Jack Wlezien, spokesman for Bass Pro Shops.

Wlezien said because Cabela’s is a publicly traded company, there are a number of federal regulations that need to be followed while the transaction is pending. He said the transaction is expected to close sometime in 2017. Bass Pro Shops is a privately-owned company.

Cabela’s is headquartered in Nebraska, and it is not immediately apparent how jobs will be impacted by the acquisition. Cabela’s has been open for 55 years, and has 85 specialty retail stores in the U.S. and Canada.

“Cabela’s is pleased to have found the ideal partner in Bass Pro Shops,” said Tommy Millner, Cabela’s chief executive officer. “Having undertaken a thorough strategic review, during which we assessed a wide variety of options to maximize value, the board unanimously concluded that this combination with Bass Pro Shops is the best path forward for Cabela’s, its shareholders, outfitters and customers.”

The agreement will give Cabela’s shareholders $65.50 per share in cash, according to a company statement.

As part of the deal, Capital One will also take over Cabela's credit card unit. The deal is backed by $1.8 billion from Goldman Sachs, and another $600 million in financing from Pamplona Capital, a private equity fund.

Reporter Ed Richter and the Associated Press contributed to this report.