Bass Pro Shops acquisition leaves questions unanswered

A long awaited announcement was made Monday, validating some of the speculation that has been circulating about Bass Pro Shops purchasing Cabela’s. However, the announcement still leaves questions to be answered.

A press release sent out by the two companies Monday stated they have entered into a definitive agreement under which Bass Pro Shops will acquire Cabela’s for $65.50 per share in cash, representing an aggregate transaction value of approximately $5.5 billion.

According to the press release, following the closing of the transaction, Bass Pro Shops “intends to celebrate and grow the Cabela’s brand and will build on qualities that respective customers love most about Cabela’s and Bass Pro Shops. In addition, Bass Pro Shops recognizes the strength of Cabela’s CLUB Loyalty program and intends to honor Cabela’s customer rewards and sees potential over time to expand the program in the combined company.”

What all of this means to Sidney is still unclear, however in the press release Bass Pro made this statement, “Bass Pro Shops appreciates and understands the deep ties between Cabela’s and the community of Sidney, Nebraska. Dick, Mary and Jim Cabela founded their company in Sidney in 1961, and the company has flourished with its base of operations there ever since. Bass Pro Shops intends to continue to maintain important bases of operations in Sidney and Lincoln and hopes to continue the very favorable connections to those communities and the Cabela’s team members residing there.”

When asked for further information and clarification on the companies’ future, Nathan Borowski, communications specialist with Cablea’s, said “until another formal announcement is made, we do not have additional comments or statements to provide regarding the announcement.”

The press release stated “A driving force behind this agreement is the highly complementary business philosophies, product offerings, expertise and geographic footprints of the two businesses. The essence of both Bass Pro Shops and Cabela’s is a deep passion to serve outdoor enthusiasts and support conservation. The combination brings together three of the nation’s premier sporting brands: Cabela’s, a leader in hunting; Bass Pro Shops, a leader in fishing; and White River Marine Group, a worldwide leader in boating, which is part of Bass Pro Shops.”

Bass Pro Shops was founded in 1972 by Johnny Morris. There are ninety-nine stores and Tracker Marine Centers located primarily in the eastern part of the U.S. and Canada. Bass Pro Shops employs approximately 20,000 team members. Bass Pro’s cooperate offices are in Springfield, Missouri. Cabela’s, founded in 1961, currently has 19,000 outfitters operating in 85 retail stores.

“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,” said Johnny Morris, founder and CEO of Bass Pro Shops. “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,” said Tommy Millner, Cabela’s Chief Executive Officer. “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.”

Upon closing, Bass Pro Shops will commence a multi-year partnership agreement with Capital One. All Cabela’s CLUB points and Bass Pro Shops Outdoor Rewards points will be unaffected by the transactions and customers can continue to use their credit cards as they were prior to the transaction. Capital One intends to continue to operate the Cabela’s CLUB servicing center in Lincoln, Nebraska.

Governor Pete Ricketts issued a statement Monday following the announcement by Cabela’s “I know this change brings significant disruption and uncertainty for the citizens of Cheyenne County and the surrounding communities. My office, the Department of Economic Development and the Department of Labor stand ready to assist area residents and communities to find opportunities. Nebraskans have faced challenges in the past, and we overcome them by working together. We will face these new circumstances by working together as well.”

Gov. Ricketts went on to say, “We are pleased Capitol One agreed to keep their acquired operations in Lincoln, and we encourage Bass Pro to consider the same. I know from personal experience that when you hire Nebraskans you get individuals who are well-educated, have a great work-ethic, and will make your company succeed.”

Sidney’s Mayor Mark Nienhueser said he appreciates Gov. Ricketts comments offering state support and assistance. Nienhuser also had these words to say about the acquisition, “the City of Sidney and Cabela’s have had a shared history of growth and prosperity since 1969 when Dick and Jim Cabela moved their company from Chappell to Sidney, and we are hopeful that Cabela’s will continue significant operations in its hometown.”

A media release sent out by the City of Sidney and Nienhueser said, “throughout the years, the city has worked hand in hand with Cabela’s, which has been a major driver of economic growth in our community and surrounding areas. The city has consistently shown support for Cabela’s by providing economic incentives and large infrastructure projects to support the company and its employees as it grew and expanded in Sidney, throughout the State of Nebraska and the nation. Sidney City officials, like everyone else in Nebraska, are waiting for more details in hopes of learning what this new development will mean to the company and its employees, who make up significant portions of Sidney’s and numerous other communities’ populations.”

“We are anxious to meet with Bass Pro Shops executives to highlight all our community offers, all the benefits we have provided and can provide to the continuing company operations here,” Nienhueser said.

The transaction, which is expected to close in the first half of 2017, will be completed through a cash merger and is subject to approval by Cabela’s shareholders, as well as regulatory approvals and other customary closing conditions.