If Bass Pro were to acquire Cabela’s it would necessarily draw antitrust scrutiny.
According to sources who are familiar with the matter at hand, a consortium of Bass Pro Shops, Capital One Financial Corp and Goldman Sachs Group Inc’s private equity arm, is in the lead to acquire U.S. outdoor retailer Cabela’s Inc.
Since the deal will see the merger of two of the country biggest hunting & fishing retailers, the deal will face antitrust scrutiny.
This development comes in the wake of Elliott Management Corp pressuring Cabela’s to explore strategic alternatives, including a potential sale.
Although the exact price the consortium offered Cabela’s is still unknown, according to the sources, the amount is well in excess of $4 billion.
It is likely that the announcement of the deal will come forth sometime next week.
Since their founding years, Cabela’s and Bass Pro have been a mecca for outdoor enthusiasts. Broadly speaking, although the outdoor industry has struggled to compete with internet retailers such as Amazon, the duo have done well by targeting customers who are looking for a one-stop shop for outdoor gears, expert advice and entertainment.
Both companies have also benefitted from the uncertainty surrounding gun law changes. Revenues from hunting-gun business is significant.
While Cabela’s has a strong foothold across the United States, Bass Pro’s nearly 100 stores are grouped on the U.S. north-east.
Sources preferred the cover of anonymity since the deliberations are still confidential.
When asked to respond to requests for comment, Cabela’s and Goldman Sachs declined to comment, while Capital One and Bass Pro did not immediately respond to requests for comments.
Categories: Entrepreneurship, HR & Organization, Regulations & Legal, Strategy
manageria.biz 
Leave a comment