Bass Pro Shops to snap up Cabela's in a deal worth $5.5bn

Jessica Morris
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Cabela first said that it was exploring strategic alternatives in December (Source: Getty)

US fishing and hunting equipment chain Cabela's has agreed to sell itself to another outdoor industry firm Bass Pro Shops in a deal valued at $5.5bn (£4.28bn).

Bass Pro Shops' offer of $65.50 per share represents a 19.2 per cent premium to Cabela's close on Friday. This news helped shares in Cabela's hit their highest level in more than a year today.

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Cabela's first said that it was exploring strategic alternatives in December. The company had been under pressure from activist hedge fund Elliott Associate which disclosed an 11.1 per cent stake in October last year.

It was created in 1961 by founder Dick Cabela and his wife Mary from the kitchen table of their home in Chappell, Nebraska. Its catalogues are now shipped to all of the US states and 125 countries worldwide.

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The combined company will own 184 stores in the United States and Canada. Bass Pro Shops' founder, majority shareholder and chief executive Johnny Morris will continue at the helm of the new firm which will remain private.

Bass Pro Shops will finance the deal through preferred equity financing commitments of $1.8bn from Goldman Sachs and $600m Pamplona Capital Management.

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