Outdoor retailer Bass Pro Shops said today that is has purchased its peer Cabela’s Inc. in a deal valued at $5.5 billion.
Springfield, Miss.-based Bass Pro and Sidney, Neb.-based Cabela’s said that a driving force behind the new merger is “the highly complementary business philosophies, product offerings, expertise and geographic footprints of the two businesses.”
The transaction will bring together Cabela’s, Bass Pro Shops and Bass-Pro owned boating company White River Marine Group.
Cabela’s stock soared to a 52-week high on the heels of the acquisition. As of 3 p.m. ET, its shares had gained nearly 15 percent, to $63.13. Cabela said its stockholders would be paid $65.50 in cash per share.
“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, said in a release. “We have enormous admiration for Cabela’s, its founders and outfitters, and its loyal base of customers. We look forward to continuing to celebrate and grow the Cabela’s brand alongside Bass Pro Shops and White River as one unified outdoor family.”
Morris will be the CEO of the combined company.
Privately held Bass Pro said it would continue to honor Cabela’s reward cards and credit cards. The company has reportedly been a longtime suitor of Cabela’s, which had struggled to produce sales and profit growth in recent years.
Cabela’s has 85 specialty retail stores, primarily in the western U.S. and Canada. Bass Pro has 99 stores and Tracker Marine Centers located primarily in the eastern part of the U.S. and Canada.