(Reuters) - Bass Pro Shops said on Monday it will acquire Cabela’s Inc CAB.N for $5.5 billion, combining two meccas for outdoor enthusiasts, even as the deal may face antitrust scrutiny given that the hunting and fishing retailers overlap in several U.S. states.

A customer looks through the in-store sales advertisements inside a Cabela's store on the shopping day dubbed "Black Friday" in Fort Worth, Texas November 27, 2009. REUTERS/Jessica Rinaldi

The deal, first reported by Reuters, will combine Cabela’s 85 stores, which have a stronger U.S. Northwest presence, with Bass Pro’s roughly 100 stores that are concentrated in the U.S. Southeast.

Their overlap in Texas, Missouri and Kansas will likely raise antitrust concerns.

“Both Cabela’s and Bass Pro Shops used promotions to drive store traffic and market share, especially in contested geographic regions. As a combined entity, we see potential for a more rational promotional environment to emerge, benefiting all industry participants, “D. A. Davidson & Co said in a research note.

Cabela’s had said it would explore a sale last December after pressure from activist hedge fund Elliott Management Corp, which said the shares were undervalued.

Cabela’s shares ended up 15 percent at $63.18 on the New York Stock Exchange, close to the $65.50 per share in cash that the deal with Bass Pro values the company.

Elliott now stands to make a profit of $419.2 million, nearly double what it paid to buy an 11.1 percent stake in the company, according to regulatory filings.

Sydney, Nebraska-based Cabela’s and Springfield, Missouri-based Bass Pro have been serving outdoor enthusiasts since their respective foundings in 1961 and 1971.

As the broader industry has struggled to compete with internet retailers such as Amazon.com Inc (AMZN.O), Bass Pro and Cabela’s have been targeting customers seeking a one-stop shop for entertainment, expert advice and shopping.

Cabela’s has grappled with declining sales of apparel and footwear and has reported same-store sales growth in only one quarter in more than three years. Still, the company maintains a loyal following, with many customers willing to drive miles to shop at stores, as well as dine at its restaurants and visit its shooting ranges.

The companies have at times also benefited from their significant hunting-gun businesses, but the industry has seen steep swings in sales amid uncertainty around gun law changes.

Both companies are closely associated with their founders, Johnny Morris at Bass Pro and Dick, Mary and Jim Cabela at Cabela’s. Dick Cabela died in 2014 and was succeeded by his brother Jim as chairman of Cabela’s. Johnny Morris, who still owns a majority of Bass Pro, will be chief executive of the combined company.

Cabela’s also agreed to sell its credit card business called “World’s Foremost Bank” to Capital One Financial Corp (COF.N), which will forge a 10-year partnership with Bass Pro to issue credit cards to Cabela’s customers.

Bass Pro will finance the acquisition through preferred equity financing commitments of $1.8 billion from Goldman Sachs Group Inc (GS.N) and $600 million from buyout firm Pamplona Capital Management.

JPMMorgan Chase & Co (JPM.N) advised Bass Pro Shops and Guggenheim Securities advised Cabela’s on the deal.</s>U.S. fishing and hunting equipment store chain Cabela’s Inc said it agreed to be bought by rival Bass Pro Shops in a deal valued at $5.5 billion.

The deal would unite two of the country’s largest hunting and fishing retailers and likely face antitrust scrutiny. It would come close to a year after Cabela’s said it would explore strategic alternatives, including a potential sale, after coming under pressure from activist fund Elliott Management Corp.

The exact price the Bass Pros consortium was offering for Cabela’s could not be immediately learned. But the deal is set to value Cabela’s well in excess of $4 billion, according to the sources.

The consortium consists of Bass Pro Shops, Goldman Sachs Group Inc.’s private equity arm and Capital One Financial Corp., according to people familiar with the matter.

The Bass Pro consortium has so far prevailed over a rival bid from private equity firm Sycamore Partners, which had teamed up with U.S. credit card company Synchrony Financial to make an offer, the people said. While it is still possible that the outcome changes, a deal could be announced as early as this week, the sources said.

The sources asked not to be identified because the deliberations are confidential. Cabela’s on Monday confirmed news of the sale agreement.

Cabela’s has a store in Scarborough and the nearest Bass Pro Shops store is in New Hampshire.

Sidney, Nebraska-based Cabela’s and Springfield, Missouri-based Bass Pro have been meccas for outdoor enthusiasts since their respective foundings in 1961 and 1971. As the broader retail industry has struggled to compete with internet retailers such as Amazon.com, Bass Pro and Cabela’s have been targeting customers seeking a one-stop shop for entertainment, expert advice and shopping.

The companies have also at times benefited from their significant hunting-gun businesses, as the industry experiences steep swings in sales amid uncertainty around gun law changes.

Both retailers have a foothold across the United States, with overlap in states that include Texas, Missouri and Kansas. Still, Cabela’s roughly 80 stores have a stronger Northwest presence, while Bass Pro’s approximately 100 stores are more concentrated in the U.S. Northeast.

Reuters reported last week that Bass Pro and Goldman Sachs had teamed up with Capital One, which is interested in the credit card business of Cabela’s, which is called World’s Foremost Bank. That had nearly 2 million accounts with roughly $5 billion in loans and $502 million in revenue in 2015, according to the company’s latest annual report.</s>(Reuters) - Cabela's Inc said it agreed to be bought by Bass Pro Shops in a deal valued at $5.5 billion that will combine the top two hunting and fishing retailers in the United States.

Springfield, Missouri-based Bass Pro Shops, a long-time suitor of Cabela's, will nearly double its store count in North America through the addition of Cabela's 85 stores.

Cabela's, whose stores are known for their museum quality experience and taxidermy services, are located mostly in the U.S. Northwest, while Bass Pro's 99 stores are concentrated in the Northeast.

The deal comes nearly a year after activist hedge fund Elliott Management said it had taken an 11.1 percent stake in the company and called for a sale. Two months later, Cabela's said it would explore strategic alternatives.

Elliott stands to make $419.2 million from the deal, or nearly double of what the hedge fund paid for its stake, according to regulatory filings.

Cabela's has struggled with declining sales of apparel and footwear and has reported same-store sales growth in only one quarter in more than three years.

Bass Pro Shops, founded by Johnny Morris as a fishing gear shop in his dad's liquor store in the 1970s, expects the deal to help it offer a one-stop shop for entertainment, expert advice and shopping.

Morris will be the Chief Executive of the combined company.

Both companies have benefited from their significant hunting-gun businesses as the industry experiences swings in sales amid uncertainty around gun law changes.

Bass Pro's offer of $65.50 per share is a 19.2 percent premium to Cabela's close on Friday.

Shares of Cabela's jumped nearly 15 percent to $63.00 in morning trading, their highest in more than a year. Up to Friday close, they had risen 17 percent since the company said it was exploring strategic alternatives.

Reuters reported on Sunday that Bass Pro was closing in on a deal to buy the company.

Cabela's also agreed to sell its credit card business called "World's Foremost Bank" to Capital One Financial Corp, which will forge a 10-year partnership with Bass Pro Shops to issue credit cards to Cabela's customers.

Capital One spokeswoman Pam Girardo said terms of the transaction would not be disclosed.

Bass Pro Shops will finance the deal through preferred equity financing commitments of $1.8 billion from Goldman Sachs and $600 million Pamplona Capital Management.</s>(Reuters) - Fishing and hunting equipment chain Cabela's Inc said it agreed to be bought by Bass Pro Shops in a deal valued at $5.5 billion that will help the privately held company nearly double its store count in North America.

The offer of $65.50 per share is a 19.2 percent premium to Cabela's close on Friday.

Shares of Cabela's jumped nearly 15 percent to $63.00 in early trading, their highest in more than a year. Up to Friday close, they had risen 17 percent since the company said in December it was exploring strategic alternatives.

Cabela's has struggled with declining sales of apparel and footwear and has reported same-store sales growth in only one quarter in more than three years.

The retailer had been under pressure from activist hedge fund Elliott Associates L.P, which disclosed an 11.1 percent stake in October last year, to pursue strategic alternatives.

Reuters reported on Sunday that a consortium of Bass Pro Shops, Goldman Sachs Group Inc's private equity arm and Capital One Financial Corp <COF.N> was in the lead to buy the company.

The combined company will own 184 stores in the United States and Canada.

Cabela's also agreed to sell its credit card business called "World's Foremost Bank" to Capital One Financial Corp, which will forge a 10-year partnership with Bass Pro Shops to issue credit cards to Cabela's customers.

Capital One spokeswoman Pam Girardo said terms of the transaction would not be disclosed.

Bass Pro Shops founder and CEO Johnny Morris will continue as CEO and majority shareholder of the combined company, which will remain private.

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

Springfield, Missouri-based Bass Pro Shops has long been in the running to acquire Cabela's.</s>U.S. fishing and hunting equipment store chain Cabela's Inc ( ) said it agreed to be bought by rival Bass Pro Shops in a deal valued at $5.5 billion.

The offer of $65.50 per share is a 19.2 percent premium to Cabela's Friday close.

Reuters had reported on Sunday that a consortium of Bass Pro Shops, Goldman Sachs Group Inc's ( ) private equity arm and Capital One Financial Corp ( ) was in the lead to buy the company.</s>SIDNEY, Neb. — Fishing and hunting equipment chain Cabela's Inc. said it agreed to be bought by Bass Pro Shops in a deal valued at $5.5 billion that will help the privately held company nearly double its store count in North America.

The offer of $65.50 per share is a 19.2 percent premium to Cabela's close on Friday, Sept. 30.

Shares of Cabela's jumped nearly 15 percent to $63.00 in early trading, their highest in more than a year. Up to Friday close, they had risen 17 percent since the company said in December it was exploring strategic alternatives.

Cabela's has struggled with declining sales of apparel and footwear and has reported same-store sales growth in only one quarter in more than three years.

Reuters reported on Sunday that a consortium of Bass Pro Shops, Goldman Sachs Group Inc.'s private equity arm and Capital One Financial Corp was in the lead to buy the company.

The combined company will own 184 stores in the United States and Canada.

Cabela's operates several stores in the Upper Midwest, including four in Minnesota, two in South Dakota, four in Wisconsin and three in Montana.

In Minnesota, the outdoor sporting goods retailer has in East Grand Forks, Owatonna, Rogers and Woodbury. Both Mitchell and Rapid City have store locations in South Dakota while Wisconsin offers retail spots in Prairie du Chien, Richfield, Green Bay and Sun Prairie. Montana locations are in Billings, Missoula and Kalispell.

Cabela's also agreed to sell its credit card business called "World's Foremost Bank" to Capital One Financial Corp, which will forge a 10-year partnership with Bass Pro Shops to issue credit cards to Cabela's customers.

Capital One spokeswoman Pam Girardo said terms of the transaction would not be disclosed.

Bass Pro Shops founder and CEO Johnny Morris will continue as CEO and majority shareholder of the combined company, which will remain private.</s>Bass Pro Shops is buying Cabela's in a $5.5 billion deal that brings together two prominent outfitters for the great outdoors.

Bass Pro Shops sells fishing supplies, and Cabela's is a hunting store known for its taxidermy displays. There's plenty of crossover -- especially because both companies sell guns and ammunition.

Cabela said its stockholders would be paid $65.50 in cash per share. Cabela's (CAB) stock jumped 15% at the start of trading.

Johnny Morris, founder of Bass Pro Shops, assured customers in an open letter that "there will be no immediate impact to our stores."

The companies did not immediately respond to CNNMoney messages about whether any of Cabela's 19,000 employees would eventually be laid off or any of its 85 U.S. and Canadian stores closed.

Bass Pro Shops, which is privately held, said it would honor Cabela's rewards cards and credit cards.

Cabela's stores have a distinctive rustic decor featuring displays of stuffed bears, deer, elk and moose. Some of the larger stores resemble theme parks or natural history museums, with extravagant displays of Arctic landscapes with stuffed Musk oxen, or African landscapes with stuffed elephants.

Much of Cabela's merchandise is camouflage and camping gear, including tents and bear-proof food kegs. The company is also known for its so-called gun libraries, green-walled rooms with antique guns for sale, including firearms from both World Wars.

The deal is being financed by Goldman Sachs (GS) and Pamplona.</s>In this April 15, 2015 photo, a large crowd of people line up as they wait for the grand opening of Bass Pro Shops Outpost store in Atlantic City, N.J. Outdoor gear giants Bass Pro and Cabela's will combine in a $4.5 billion deal announced Monday. (AP Photo/Mel Evans)</s>Bass Pro Shops will buy outdoor retail rival Cabela’s in a deal valued at $5.5 billion.The two companies announced the deal Monday morning, noting “a driving force behind this agreement is the highly complementary business philosophies, product offerings, expertise, and geographic footprints of the two businesses.”The 55-year-old Cabela’s has undoubtedly been one of Bass Pro's biggest business rivals. It has 85 retail stores and over 19,000 employees, or “outfitters.” The stores are primarily in the western U.S. and Canada. Cabela's also maintains large catalog and web-based retail operations.While Bass Pro will own the Cabela’s brand, the company intends to “grow and celebrate the Cabela’s brand and will build on qualities that respective customers love most about Cabela’s and Bass Pro Shops.”Johnny Morris, Bass Pro founder and CEO, will hold a majority stake in the new entity and will lead it. Cabela’s is currently a public company, traded on the New York Stock Exchange, but the combined company would be private, as is Bass Pro.The news release issued Monday morning said Cabela’s is a leader in hunting, while Bass Pro is a leader in fishing. The deal will, of course, include White River Marine Group, a Bass Pro company that makes boats, boat motors, and boat trailers under the brands Tracker Boats, Sun Tracker, Nitro, Tahoe, Regency, Mako, Ranger, Triton, and Stratos.Cabela’s announced in December that it was exploring “strategic alternatives.” The deal with Bass Pro gives Cabela’s shareholders a 19.2 percent premium above the stock’s close at the end of trading on Friday.The deal was unanimously approved by Cabela’s board of directors and is slated to close in the first half of 2017, pending shareholder approval and a blessing from the the federal government."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.”“The story of each of these companies could only have happened in America, made possible by our uniquely American free enterprise system. 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.”“Cabela’s is pleased to have found the ideal partner in Bass Pro Shops. Having undertaken a thorough strategic review, during which we assessed a wide variety of options to maximize value, the board unanimously concluded that this combination with Bass Pro Shops is the best path forward for Cabela’s, its shareholders, outfitters, and customers.“In addition to providing significant immediate value to our shareholders, this partnership provides a unique platform from which our brand will be extremely well positioned to continue to serve outdoor enthusiasts worldwide for generations to come.”</s>Fishing and hunting equipment chain Cabela’s Inc said it agreed to be bought by rival Bass Pro Shops in a deal valued at $5.5-billion (U.S.) that will help the privately held company nearly double its store count in North America.

The offer of $65.50 per share is a 19.2 per cent premium to Cabela’s Friday close.

Shares of Cabela’s jumped nearly 15 per cent to $62.88 in premarket trading and were set to open at their highest in more than two years.

Cabela’s has struggled with declining sales of apparel and footwear and has reported same-store sales growth in only one quarter in more than three years.

The retailer had been under pressure from activist hedge fund Elliott Associates L.P, which disclosed an 11.1 per cent stake in October last year, to pursue strategic alternatives.

Reuters reported on Sunday that a consortium of Bass Pro Shops, Goldman Sachs Group Inc’s private equity arm and Capital One Financial Corp was in the lead to buy the company.

In connection with the deal, Cabela’s agreed to sell its credit card operations to Capital One Financial Corp.

Bass Pro Shops will finance the deal through preferred equity financing commitments of $2.4-billion from Goldman Sachs and Pamplona Capital Management.
Bass Pro Shops acquires Cabela's for $5.5 billion, combining two retailers for outdoor enthusiasts.