American top outdoor brand Bass Pro will acquire largest rival Cabela's
Date: 2016-07-22 13:33
According to Reuters, Bass Pro Shops, the nation’s largest retailer of fishing gear, hunting and camping supplies, is working with an investment bank to explore the possibility of acquiring Cabelas, its largest competitor. At the same time, Cabelas has recently begun looking for alternatives and contacts with private equity firms. For the news of the acquisition, the two companies have not made a positive response. According to informed sources, Cabelas' auction sale is expected to end within a few days.
Founded in 1971, Bass Pro Shops was founded by John Morris, one of America’s largest outdoor retailers of hunting, fishing, camping, and other outdoor products. In the 2013 Forbes 2013 US Rich List, John Morris ranked 110th with $4 billion in wealth, and was the only person in the outdoor industry at the time. The total number of employees is more than 20,000. There are currently 94 retail stores in the United States and Canada.
In addition to the physical store operations, Bass Pro Shops also conducts direct sales and online sales in the world. The company's RodGun product retail network covers more than 7,000 independent stores worldwide.
Founded in 1961, Cabelas was founded by Dick Cabela, headquartered in Sidney, and has 64 stores across the United States. It has approximately 20,000 employees and 2015 revenues of $3.998 billion.
Cabelas sells hunting, fishing and outdoor equipment. Cabelas' retail department not only operates retail stores but also manages wild museums and educational centers to provide customers with a complete shopping experience. The biggest feature of Cabelas is catalog sales. It has more than 100 different catalogs to sell every year. At present, there are 88 offline stores in the United States. In 1998, Cabelas established an online sales channel.
As early as last year, it was rumored that Bass Pro would join hands with Goldman Sachs to acquire Cabelas. Goldman Sachs will provide Bass Pro with the necessary equity financing to acquire Cabelas.
The news is already true, according to New York Post report that the deal is really helpless for Cabelas. The acquisition of Cabelas was caused by the stock price frustration. In 2014, the revenue was 3.65 billion US dollars, but the stock price fell instead. The 2015 third-quarter financial report indicated that there was a downward trend in retail sales. Like many physical stores, Cabelas has been struggling in recent years and was ranked by the magazine as the most troublesome retail store in 2015. According to Reuters, Cabe has also been exploring the sale of its credit card business separately and looking for potential buyers.
The acquisition is not just as simple as the money on the books. The acquisition was as shocking as the Coca-Cola acquisition of PepsiCo in the US outdoor retail industry. The US media community pointed out that this acquisition will consolidate the position of Bass Pro Shop employees, but it may be a disaster for Cabelas employees, and the merger will bring about major layoffs. But on the other hand, as the two largest retailers of hunting and fishing supplies in the United States, this transaction may be more likely to be potential cost savings and synergies, and the emergence of a giant US outdoor retail industry.
Date: 2016-07-22 13:33
According to Reuters, Bass Pro Shops, the nation’s largest retailer of fishing gear, hunting and camping supplies, is working with an investment bank to explore the possibility of acquiring Cabelas, its largest competitor. At the same time, Cabelas has recently begun looking for alternatives and contacts with private equity firms. For the news of the acquisition, the two companies have not made a positive response. According to informed sources, Cabelas' auction sale is expected to end within a few days.
Founded in 1971, Bass Pro Shops was founded by John Morris, one of America’s largest outdoor retailers of hunting, fishing, camping, and other outdoor products. In the 2013 Forbes 2013 US Rich List, John Morris ranked 110th with $4 billion in wealth, and was the only person in the outdoor industry at the time. The total number of employees is more than 20,000. There are currently 94 retail stores in the United States and Canada.
In addition to the physical store operations, Bass Pro Shops also conducts direct sales and online sales in the world. The company's RodGun product retail network covers more than 7,000 independent stores worldwide.
Founded in 1961, Cabelas was founded by Dick Cabela, headquartered in Sidney, and has 64 stores across the United States. It has approximately 20,000 employees and 2015 revenues of $3.998 billion.
Cabelas sells hunting, fishing and outdoor equipment. Cabelas' retail department not only operates retail stores but also manages wild museums and educational centers to provide customers with a complete shopping experience. The biggest feature of Cabelas is catalog sales. It has more than 100 different catalogs to sell every year. At present, there are 88 offline stores in the United States. In 1998, Cabelas established an online sales channel.
As early as last year, it was rumored that Bass Pro would join hands with Goldman Sachs to acquire Cabelas. Goldman Sachs will provide Bass Pro with the necessary equity financing to acquire Cabelas.
The news is already true, according to New York Post report that the deal is really helpless for Cabelas. The acquisition of Cabelas was caused by the stock price frustration. In 2014, the revenue was 3.65 billion US dollars, but the stock price fell instead. The 2015 third-quarter financial report indicated that there was a downward trend in retail sales. Like many physical stores, Cabelas has been struggling in recent years and was ranked by the magazine as the most troublesome retail store in 2015. According to Reuters, Cabe has also been exploring the sale of its credit card business separately and looking for potential buyers.
The acquisition is not just as simple as the money on the books. The acquisition was as shocking as the Coca-Cola acquisition of PepsiCo in the US outdoor retail industry. The US media community pointed out that this acquisition will consolidate the position of Bass Pro Shop employees, but it may be a disaster for Cabelas employees, and the merger will bring about major layoffs. But on the other hand, as the two largest retailers of hunting and fishing supplies in the United States, this transaction may be more likely to be potential cost savings and synergies, and the emergence of a giant US outdoor retail industry.
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