(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. 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. 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 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. 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. 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.
Bass Pro Shops acquires Cabela's for $5.5 billion, combining two retailers for outdoor enthusiasts.