Bass Pro Moving forward to buy Cabelas

Bass Pro is working with Goldman Sachs to buy Cabelas.

http://www.outdoorhub.com/news/2016/04/2...m_campaign=OHUB

Last November, OutdoorHub reported on speculation that Bass Pro Shops, a privately held outdoor retailer, was interested in buying out one of its biggest competitors: Cabela’s. It now appears that Bass Pro is moving forward in making a bid on its rival—with the help of Goldman Sachs. Reuters broke the news this week, reporting that sources say Bass Pro and Goldman Sachs Group’s private equity arm partnered up to make an offer for Cabela’s. The news almost instantly caused Cabela’s shares to jump 8.4 percent, ending up with a 6.4 percent increase to $52.51 on Tuesday. So far, both Cabela’s and Bass Pro Shops declined to comment on the issue.

Market analysts say that by working with Goldman Sachs, Bass Pro will have certainly have the ability to pursue the purchase of Cabela’s—but they are not the only ones. There are other entities interested in making bids on large outdoor retailer, and sources claim the process is still in its earliest stages. Officially, Cabela’s said last year that it will be working with an investment bank to explore its options, which may include an outright sale of the company, or just sections of it.

There is currently much speculation, and some concern, on how a sale would proceed. Cabela’s currently has 67 stores operating in North America and employs about 19,300 people. The outdoor retailer was originally founded as a mail-order business in 1961 by its namesake Richard Cabela. Cabela started the company with nothing more than $45 worth of fishing flies, and ran the business from his kitchen table with his wife. Due to incredible demand and its rising popularity, the company grew rapidly, eventually settling in a 50,000 square-foot facility in Sidney, Nebraska. The company’s sprawling headquarters remains in the city to this day.

Some observers say that should a sale to Bass Pro move forward, it is possible that Cabela’s infrastructure would remain more or less intact. The Cabela’s brand is very valuable and experts say that Bass Pro would be wise to preserve that. Leon Nicholas, senior vice president of Kantar Retail, a retail research and consulting firm, told the Omaha World Herald that Bass Pro may seek to keep Cabela’s headquarters operating. Residents of Sidney, where Cabela’s is one of the largest employers, certainly hopes the same.

“I think people are very optimistic that they’re going to stay, at least we are,” Dennis Denovellis, who owns a business in town, told the Herald. “We’ve been here a long, long time and they’ve been here a long, long time.”

Experts add that if Bass Pro does acquire Cabela’s, the company will have a firm grip on the outdoor retail industry and perhaps give greater competition to online giants such as Amazon.

Would this not become a monopoly?
I dang nearly became one in the boating industry with their purchases.
I like BPS for fishing stuff.
I like Cabela's for my hunting stuff.
Being tall Cabela's Tall clothing is really tall, not just a guesstamation.

yup...the less competition the more we'll pay and the quality will go down...just how it works...just look at how screwed up everything is when the government takes over things, like lets say healthcare...it hasn't hit rock bottom yet but give it a chance to really get going...

I really hope they stay as separate entities, I don't ever think monopoly is a good thing. Often times I believe it corrupts the capitalist system and declines the need for competition and quality. The only good thing that could come of this is a merger of their rewards systems, maybe I'd finally get that $40-$50 that's floating around in rewards out there haha

You currently have better choices then either BPS or Cabelas right now to spend your hard earned money. Let it go...

Wonder when they will add a grocery and pharmacy section.

Why would fishing store buy what is predominantly a hunting store?

Because BPS is becoming a corp rader in the industry, don't be surprised if Gander Mtn. is next.

Mack Prairie Wings and Rogers Sporting Goods dominates the hunting segment in my opinion. Tackle Warehouse and local is best for fishing. The only thing I have purchased from basspro in the last couple years have been waders. They have a great no questions asked year warranty. I was hunting 5-7 days a week wearing out waders.

Might be true

But everytime I walk into BPS in Grapevine it is always full of customers.............

I'm one of those people who every one in a while "window shops" at Bass Pro or Cabellas. Can walk around those stores for a long time just looking at stuff like a kid in a candy store but I actually PURCHASE tackle online or from the smaller retailers like APT for price and selection. If BP and/or Cabellas shut their doors tomorrow it would be of little consequence to me. That being said healthy competition is always good for the consumer. If you think BP and Cabellas are expensive now wait till they don't feel a need to compete with each other because they are actually one in the same regardless of their name.

Congress is the governing body charged with enforcing laws regarding monopolies.

Some money here, some more over there..........consumer ends up paying more.