Bass Pro Shops has reached an agreement to acquire Cabela’s Inc. for $4.5 billion in cash, combining two of the biggest sellers of outdoor-sports equipment and apparel, the Wall Street Journal reported today.
Cabela’s has a major store in East Hartford, and Bass operates a store in Bridgeport.
Under terms of the agreement, Cabela’s shareholders will receive $65.50 a share, in a deal the companies said will combine complementary product lines and domestic geographic markets, the report said.
The companies valued the deal at $5.5 billion.
The merger comes as the sporting goods industry has been struggling with tepid sales, the Wall Street Journal said.
Cabela’s last winter said that it was reviewing its strategic options, including a possible sale, as it came under pressure from activist investor Elliot Management Corp. Reuters reported in April that Bass was preparing an offer for Cabela’s.
Privately owned Bass Pro Shops also said it will begin a partnership with a unit of Capital One Financial Corp. for a Cabela’s co-branded credit card, the report said. The companies said their customer-loyalty programs will remain unchanged.
The deal, which is expected to close in the first half of 2017, includes Cabela’s 85 specialty retail stores, primarily in the western U.S. and Canada, and Bass Pro Shops’ 99 stores and Tracker Marine Centers located primarily in the eastern part of the U.S. and Canada.
