Bass Pro Shops hooks Cabela's in $5.5 billion deal

[AfricaHunting.com]

http://www.cnbc.com/2016/10/03/bass-pro-shops-to-buy-cabelas-for-6550-a-share-in-cash.html

Fishing and hunting equipment chain Cabela's 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's private equity arm and Capital One Financial 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.

J.P. Morgan Chase advised Bass Pro Shops and Guggenheim Securities advised Cabela's.

 

[BRICKBURN]

uh oh!

 

[PHOENIX PHIL]

I'm an unashamed capitalist, but Cabelas ceased being Cabelas when it went public. The impeccable customer service along with people who could answer questions regarding products they sold went away. That was the time when I didn't care if I paid a bit more for something from Cabelas, it was worth it to me. The local Phoenix store has so many dimwits particularly behind the gun counter it is a surprise when you get someone there that knows what they're talking about. That store is on the other side of town and I'll only go there if I happen to be over that way.

I like Bass Pro for what it is and just shopped there yesterday, but this move I'm afraid will only make Cabelas worse.

 

[Clayton]

Pretty much what Phil said.

 

[thriller]

Yea this is going to pull Cabelas further downhill. Shame though for that check I would have probably given selling a serious look as well.

 

[sierraone]

I'm an unashamed capitalist, but Cabelas ceased being Cabelas when it went public. The impeccable customer service along with people who could answer questions regarding products they sold went away. That was the time when I didn't care if I paid a bit more for something from Cabelas, it was worth it to me. The local Phoenix store has so many dimwits particularly behind the gun counter it is a surprise when you get someone there that knows what they're talking about. That store is on the other side of town and I'll only go there if I happen to be over that way.

I like Bass Pro for what it is and just shopped there yesterday, but this move I'm afraid will only make Cabelas worse.

Agree with everything you said Phil!

 

[sierraone]

Cabelas used to be a class or two above Bass Pro. Now they will bring the store down even further than going public did. Once a company has to make share holders happy, they lower their pay scale which results in"dimwits" being hired. Like Phil said Bass Pro is what it is. I take my grand kids there a lot. I believe there is still a high end outdoor and hunting store in Minnesota and in Alaska, and hopefully other places I am not aware of. @Velo Dog and @ActionBob can confirm this or tell me I'm wrong. Anyway it goes, I hate this because I feel confident that Cabelas will go down further. Hope I am wrong.

 

[sierraone]

uh oh!

Those two little words have a lot of meaning in this case!

 

[spike.t]

....ok never been to a cabelas but try and go to bass pro when at sci and i always thought they are great.....so much under one roof so please explain to someone from outside whats the problem people seem to have with this deal?

 

[thriller]

@spike.t Generally speaking Cabelas is the same size store with a slightly higher selection of hunting supplies and better quality.

 

[sierraone]

Spike, Cabelas used to be a much higher quality store. Read Phil's post and then mine. It's been going down for a while now. But becoming just another Bass Pro can not be good. At least they will no longer be owned by share holders. That may end up being a good thing. I sure hope so.

 

[PHOENIX PHIL]

....ok never been to a cabelas but try and go to bass pro when at sci and i always thought they are great.....so much under one roof so please explain to someone from outside whats the problem people seem to have with this deal?

Mike,

Cabelas back in the day before the nationwide explosion of retail stores was primarily a mail order shop. The original store location in Sidney, Nebraska is hardly in what you would call a prime retail location. You could call them and ask them information on just about anything they sold and you'd get a good answer. Today when you do that, you get someone who can tell you the price and repeat the verbage in the online description. Go to one of the retail locations and you'll get the price only and a confused bewildered look on the face of the person in most cases when you're wanting more. I know of one lady at the Phoenix store, that if I see her, I know I'll get good info and service. And I'm sure there are a few others that work hard and know what they're doing. But they are so outnumbered by the dimwits, they can hardly overcome. Unfortunately there just doesn't seem to be much of a requirement that you're either an avid hunter or angler to work there.

Most of the time at the Phoenix store, I'm just happy to not leave pissed off. Perhaps it's just because I long for the old days? They still have stuff I buy, but the loyalty I once had to Cabelas is gone. It's about price and availability anymore and that's it.

 

[spike.t]

yeah @sierraone i read yours and phils post but to me the bass pro shops i have been in seemed to have plenty of stuff, and the quality of clothing and other toys i bought seemed good and have lasted well. me thinks you lot are a tad spoilt over there

 

[Ridge Top Ranch]

Bass Pro does not really cater to hunters with interests other than North America. No large caliber firearms or ammo in 2 KC stores.

I see more on line purchases in the future.

 

[Velo Dog]

Cabelas used to be a class or two above Bass Pro. Now they will bring the store down even further than going public did. Once a company has to make share holders happy, they lower their pay scale which results in"dimwits" being hired. Like Phil said Bass Pro is what it is. I take my grand kids there a lot. I believe there is still a high end outdoor and hunting store in Minnesota and in Alaska, and hopefully other places I am not aware of. @Velo Dog and @ActionBob can confirm this or tell me I'm wrong. Anyway it goes, I hate this because I feel confident that Cabelas will go down further. Hope I am wrong.

Hello sierraone,

Both Bass Pro and Cabela's have stores here in Anchorage.
Bass Pro's store here is much smaller than their Springfield Missouri store is but, I suppose their original Springfield store is larger than most sporting goods stores are, any place in the world to begin with.
However, the Anchorage one is the place to buy fishing gear, (including boats) and sometimes their advertised sales on live ammunition are reasonably priced.
Sadly, they do not carry used firearms so, I do not visit Bass Pro very often, and then usually only during summer months, when local fishing is on.
They do sell or at least display quite a large selection of current day firearms, for those who dig plastic and stainless steel, fluted barrels, muzzle brakes and such.
Not a thing wrong with those whatsoever but, old farts like me are generally not interested in them, except just to annoy the Enemies of Freedom, such as Billary Clinton, Barry Obama, The 9th Circuit Court of Appeals and so forth.

Cabela's on the other hand has a decent store here.
And they have a sort of / almost "man cave" type room in there, known as "The Fine Gun Room".
I do walk through that one often.
And their live ammunition sales also can be reasonably priced sometimes.
As I am now getting just about too old to continue in my line of work much longer, I have been making sober threats to retire again (did that once already and buster was it fun) and to apply for part time work there.
Such a fun job does not pay anything to brag about as it stands today.
And, I will wait to see how this buy-out affects the already "McDonald's level" of pay there.
The low pay in my case will be even worse because, the last time I had a part time job in a gun store, every payday I had to write them a check !
Fortunately my young trophy wife (still only in her 50's) has a decent job.
Otherwise, soon as my Security gig is over, we'd be living in a van, down by the river on my so-so pension.

Cheers,
Velo Dog.

PS:
The best gun store, for a decent selection of used firearms in Alaska is, "Great Northern Guns", also located here in Anchorage.
Even Cabela's "Fine Gun Room" here is not up to their level, IMO.

 

[sierraone]

yeah @sierraone i read yours and phils post but to me the bass pro shops i have been in seemed to have plenty of stuff, and the quality of clothing and other toys i bought seemed good and have lasted well. me thinks you lot are a tad spoilt over there

I am sure you are right!!!

 

[sierraone]

Hello sierraone,

Both Bass Pro and Cabela's have stores here in Anchorage.
Bass Pro's store here is much smaller than their Springfield Missouri store is but, I suppose their original Springfield store is larger than most sporting goods stores are, any place in the world to begin with.
However, the Anchorage one is the place to buy fishing gear, (including boats) and sometimes their advertised sales on live ammunition are reasonably priced.
Sadly, they do not carry used firearms so, I do not visit Bass Pro very often, and then usually only during summer months, when local fishing is on.
They do sell or at least display quite a large selection of current day firearms, for those who dig plastic and stainless steel, fluted barrels, muzzle brakes and such.
Not a thing wrong with those whatsoever but, old farts like me are generally not interested in them, except just to annoy the Enemies of Freedom, such as Billary Clinton, Barry Obama, The 9th Circuit Court of Appeals and so forth.

Cabela's on the other hand has a decent store here.
And they have a sort of / almost "man cave" type room in there, known as "The Fine Gun Room".
I do walk through that one often.
And their live ammunition sales also can be reasonably priced sometimes.
As I am now getting just about too old to continue in my line of work much longer, I have been making sober threats to retire again (did that once already and buster was it fun) and to apply for part time work there.
Such a fun job does not pay anything to brag about already.
And, I will wait to see how this buy-out affects the already "McDonald's level" of pay there.
The low pay in my case will be even worse because, the last time I had a part time job in a gun store, every payday I had to write them a check !
Fortunately my young trophy wife (still only in her 50's) has a decent job.
Otherwise, soon as my Security gig is over, we'd be living in a van, down by the river on my so-so pension.

Cheers,
Velo Dog.

PS:
The best gun store, for a decent selection of used firearms in Alaska is, "Great Northern Guns".
Even Cabela's "Fine Gun Room" here is not up to their level, IMO.

Is Great Northern Guns in Anchorage?

 

[gillettehunter]

I suspect it boils down to product knowledge and customer service...... or lack thereof. Cabelas used to have sales associates that knew their stuff. You could get practical advice from someone that knew his stuff. They TRAINED their sales staff. Once they went public the bar dropped. A friend of mine used to work there. He and much of the "middle management" were fired. They had to drop overhead to show more profit. The problem was they lost the knowledge base. People that knew the products and could train the new hires. So they lost part of what made them "special".
Bass pro is a good company, but they will NEED to improve profits to pay for this acquisition. So you can expect prices to go up. Both companies have a great selection. They have some huge stores with lots of inventory but, they gotta pay for this somehow. Competition brings prices down. Lack of competition encourages higher prices, because they can..... Some of the management will be let go. Higher priced people that know what they are doing will likely become more scarce..... So you can expect to pay more to buy from people that know less. That is the long and short of it as far as I can tell.
Someone can correct me if they think I have it wrong. Bruce

 

[PHOENIX PHIL]

yeah @sierraone i read yours and phils post but to me the bass pro shops i have been in seemed to have plenty of stuff, and the quality of clothing and other toys i bought seemed good and have lasted well. me thinks you lot are a tad spoilt over there

Actually the one thing I do like about Bass Pro is their clothing. It's reasonably priced and good quality, the Red Head stuff. I really like their shorts and shirts.

 

[cpr0312]

WOW!