OutdoorHub– 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.
Not sure what to make of this. Maybe Bass Pro can bring that extra “somethin’ somethin'” that Cabela’s seems to lack. Maybe they will combine to make the greatest outdoor-mega-store this world has ever seen. Or maybe it’ll suck and prices will go through the roof. Who knows? All we can do now is sit and wait.
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