Bass Pro Shops Buys Cabela’s

Bass Pro Shops Buys Cabela’s

Bass Pro Shops Pays $4.5 Billion for acquisition

Yesterday Bass Pro Shops ended months of speculation on the future of their former outdoor goods rival, Cabela’s. Bass Pro Shops purchased them outright in a deal worth $4.5 billion, according to USA Today. This deal combines the two superstores, and vastly expands the outdoor goods empire created by Bass Pro Shops’ founder and CEO, Johnny Morris.

“The story of each of these companies could only have happened in America,” Morris said in a statement. “We have enormous admiration for Cabela’s, its founders and outfitters, and its loyal base of customers.”

According to USA Today, Cabela’s sales fell 1.3 percent during the first half of 2016 at stores open at least a year. Conversely, hunting sales increased and average revenue per transaction rose 8.2 percent. “Cabela’s is pleased to have found the ideal partner in Bass Pro Shops,” said Tommy Millner, Cabela’s CEO. Millner added the sale is the best path forward for the company, would provide significant immediate value to its shareholders, and leave it well-positioned to continue serving outdoor enthusiasts in the future.

Morris will continue as CEO and majority shareholder in the privately held company. It will continue supporting the industry and conservation. “Conservation is at the heart and soul of Bass Pro Shops,” Morris said. “Bass Pro Shops and Cabela’s share a steadfast belief that the future of our industry, and the outdoor sports we all love, depends – more than anything else – on how we manage our natural resources.”

Representatives from both stores didn’t offer information regarding any potential Cabela’s store closures as a result of the deal. The Outdoor Wire has more in-depth analysis of the Cabela’s sale.

—photo courtesy Cabela’s