Tuesday, October 4, 2016
Bass Pro Shops to Acquire Cabela’s
The article
that we are about to discus was written by Tess Stynes on October 3, 2016. The article
examines Bass Pro Shop’s
decision to purchase Cabela’s in its entirety.
In December of 2015, Cabela’s had stated that the company was
considering several different methods of solving the problem of tepid sales. Ultimately the company concluded
to sell, resulting in a buy out of $4.5 billion in cash by Bass Pro Shop.
Bass Pro Shop’s purchase of Cabela’s results in combining two of the largest sellers of outdoor sporting goods equipment and apparel in the industry. The $4.5 billion buyout provides a guarantee that the stockholders will receive $65.50 a share, a 19% premium which they will receive by Friday on what they have invested into the company. Due to Cabela’s prominent brand awareness, Bass Pro Shop does not intend to change anything revolving around customer loyalty program. The deal is planned to be completed by the beginning of next year. Bass Pro Shop anticipates to maintain all 85 specialty retail stores, along the side of 99 Bass Pro Shop retail stores. Resulting in 184 stores that are located in both the United States and Canada.
Bass Pro Shop’s purchase of Cabela’s results in combining two of the largest sellers of outdoor sporting goods equipment and apparel in the industry. The $4.5 billion buyout provides a guarantee that the stockholders will receive $65.50 a share, a 19% premium which they will receive by Friday on what they have invested into the company. Due to Cabela’s prominent brand awareness, Bass Pro Shop does not intend to change anything revolving around customer loyalty program. The deal is planned to be completed by the beginning of next year. Bass Pro Shop anticipates to maintain all 85 specialty retail stores, along the side of 99 Bass Pro Shop retail stores. Resulting in 184 stores that are located in both the United States and Canada.
To read more about this article please click here.
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