Bass Pro to buy Cabela's for $5.5bn

Sporting goods retailer Bass Pro Shops has entered into an agreement to buy Cabela's Inc for $65.50 per share in cash, in a deal valued at around $5.5bn.

The price represents a premium of 19.2% to Cabela’s closing price on Friday, which was the day prior to the announcement of the transaction.

Upon closing of the deal, Bass Pro will begin a multi-year partnership agreement with Capital One, National Association, a wholly-owned national banking subsidiary of Capital One Financial Corporation, under which Capital One will originate and service the Cabela’s CLUB, Cabela’s co-branded credit card. Bass Pro said it will maintain a seamless integration between the credit card program and the combined companies’ retail operations and customer relationships.

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.

Bass Pro highlighted the “highly complementary” business philosophies, product offerings, expertise and geographic footprints of the two businesses.

Johnny Morris, founder and CEO of Bass Pro Shops, said: "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.

“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 andWhite River as one unified outdoor family.”

Cabela’s shares surged 14% to $62.86.