In 2017, Bass Pro Shops announced its acquisition of Cabela’s Incorporated, merging two of the nation’s leading outdoor recreational companies. The purchase was completed in September 2017 at a cost of $5.5 billion, making it one of the largest outdoor retail acquisitions in history.
What Was the Acquisition Agreement?
In October 2016, Bass Pro Shops entered into an agreement to acquire Cabela’s for $5.5 billion. The agreement included the assumption of approximately $2.0 billion of Cabela’s long-term debt. The transaction was subject to customary closing conditions, including receipt of regulatory approval, and was completed on September 25, 2017.
What Was the Impact of the Acquisition?
The acquisition of Cabela’s by Bass Pro Shops provided a number of advantages for the two companies. First, the merger combined two of the nation’s leading outdoor recreational companies to create a retail powerhouse in the outdoor industry. The new entity had over 180 stores in the United States and Canada with over $8 billion in annual revenue.
The merger also allowed the new entity to leverage its combined scale to enhance its omnichannel capabilities, offering customers a seamless shopping experience across multiple channels. In addition, the combined entity was better positioned to take advantage of cost savings through the consolidation of operations and other synergies.
How Did the Acquisition Affect Cabela’s Shareholders?
Cabela’s shareholders received $61.50 per share in cash in exchange for their shares of Cabela’s common stock. The total consideration was approximately $5.5 billion, including the assumption of approximately $2.0 billion of Cabela’s long-term debt.
The acquisition also provided Cabela’s shareholders with a premium of approximately 19 percent over the closing price of Cabela’s common stock on October 3, 2016 (the last trading day prior to the announcement of the acquisition).
What Was the Impact on Bass Pro Shops?
The acquisition of Cabela’s provided Bass Pro Shops with a number of advantages. First, the merger combined two of the nation’s leading outdoor recreational companies to create a retail powerhouse in the outdoor industry. The new entity had over 180 stores in the United States and Canada with over $8 billion in annual revenue.
The acquisition also allowed Bass Pro Shops to leverage its combined scale to enhance its omnichannel capabilities, offering customers a seamless shopping experience across multiple channels. In addition, the combined entity was better positioned to take advantage of cost savings through the consolidation of operations and other synergies.
What Was the Impact on Other Outdoor Retailers?
The acquisition of Cabela’s by Bass Pro Shops had a significant impact on the outdoor retail industry as a whole. The combined entity is now one of the largest outdoor retail companies in the world, with a presence in all 50 states, Canada, and Mexico. The combined entity is well-positioned to gain market share in the outdoor retail industry and compete more effectively with other large outdoor retailers such as Dick’s Sporting Goods and REI.
What Are the Benefits of the Acquisition?
The acquisition of Cabela’s by Bass Pro Shops provided a number of advantages for the two companies. First, the merger combined two of the nation’s leading outdoor recreational companies to create a retail powerhouse in the outdoor industry. The new entity had over 180 stores in the United States and Canada with over $8 billion in annual revenue.
The merger also allowed the new entity to leverage its combined scale to enhance its omnichannel capabilities, offering customers a seamless shopping experience across multiple channels. In addition, the combined entity was better positioned to take advantage of cost savings through the consolidation of operations and other synergies.
What Are the Drawbacks of the Acquisition?
The acquisition of Cabela’s by Bass Pro Shops had its drawbacks as well. First, the merger could lead to increased competition in the outdoor retail industry as the combined entity gains market share. This could lead to decreased prices and lower margins for other outdoor retailers.
In addition, the acquisition could lead to decreased customer service as the combined entity consolidates operations and attempts to cut costs. This could have a negative impact on the customer experience and reduce customer loyalty.