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Two former rivals in the outdoor sporting goods industry are uniting.
On Oct. 3, Bass Pro Shops announced that it is acquiring Cabela’s Incorporated for about $5.5 billion. The companies are expected to close the deal during the first half of 2017, according to an article from Business Insider.
The companies create a type of retail environment many industries try to mimic with stores that act as shopping centers as well as entertainment destinations, according to an article in The Wall Street Journal.
“Both Cabela’s and Bass Pro Shops have earned cult followings for their oversize outposts filled with hunting, fishing and outdoors gear, as well as ornate taxidermy and fishing exhibits,” The Wall Street Journal article says.
The Cabela’s purchase is happening in part due to the “complementary business philosophies, product offerings, expertise and geographic footprints of the two businesses,” according to Bass Pro Shops. Both companies serve outdoor enthusiasts and support wildlife conservation efforts.
Through merging the companies, three premiere sporting brands will be united, Bass Pro Shops says. Cabela’s is considered a leader in hunting retail; Bass Pro Shops is a leader in fishing retail; and White River Marine Group, a worldwide leader in boating retail, is also a part of Bass Pro Shops.
“Today’s announcement marks an exceptional opportunity to bring together three special companies with an abiding love for the outdoors and a passion for serving sportsmen and sportswomen,” Johnny Morris, founder and CEO of Bass Pro Shops, says. “We have enormous admiration for Cabela’s, its founders and outfitters, and its loyal base of customers.”
The merger of the companies will create a national chain with more than 180 locations and approximately 40,000 workers. Additionally, it will give Bass Pro Shops control of more than 20 percent of the $50 billion U.S. hunting, camping and fishing market, analyst Jim Duffy shares in The Wall Street Journal article.
Cabela’s branded stores will remain branded as they are, according to Bass Pro Shops. Bass Pro’s Johnny Morris will continue as CEO and be majority shareholder of the new entity. The merger will remain a private company.
