December 22nd, 2020

Sportsman’s Warehouse Acquisition by Great American Outdoors

Great American Outdoors group sportsman's warehouse cabela's bass pro hunting fishing acquisition stock purchase

The consolidation of the USA outdoor retail sector continues. The Great American Outdoors Group, which owns Cabela’s and Bass Pro, plans to purchase Sportsman’s Warehouse for $785,000,000 in cash. This means three of the biggest outdoor gear and shooting supplies vendors will all have the same parent company*. Great American (based in Missouri) will pay $18 a share for Sportsman’s Warehouse, a 42% premium over the stock price on 12/21/2020, and will remain private. The acquisition deal is expected to close in the second half of 2021. Sportsman’s Warehouse is currently based in West Jordan, Utah.

CLICK HERE for Sportsman’s Warehouse Buy-Out Press Release »

“The driving force behind the partnership is the two companies’ similar histories and highly complementary business philosophies and geographic footprints”, the companies said in a statement. “Both entities share a passion with their customers for fishing, camping, hunting, boating and other outdoor activities.”

American Outdoors said the acquisition will allow improved online ordering and faster product delivery, “by leveraging the combined company’s extensive network of distribution centers and stores[.]”

Great American Outdoors group sportsman's warehouse cabela's bass pro hunting fishing acquisition stock purchase

Will Gun Inventories Grow or Shrink? That Is Uncertain…
Will Sportman’s Warehouse continue to be a very good source for firearms and hunting gear, with attractive gun prices? That remains to be seen. The press release made no mention whatsoever of gun sales, though it did state that Cabela’s-brand hunting gear will be available. The company boasted about expanded product lines for fishing and boating:

Sportsman’s Warehouse customers can expect… widely expanded product offerings including:

Access to the world’s largest selection of premium fishing tackle including legendary Bass Pro Shops and other premier brands.

The largest selection of premium hunting gear including the iconic Cabela’s brand.

Sportsman’s Warehouse will be able to offer customers the world’s leading boat brands, side-by-sides and ATVs at money-saving prices.

Transaction Overview
The merger agreement was unanimously approved by the Sportsman’s Warehouse Board of Directors. The transaction, which is expected to close in the second half of 2021, will be completed through a cash merger and is subject to approval by Sportsman’s Warehouse’s shareholders, as well as regulatory approvals and other customary closing conditions. The transaction is not subject to any financing condition. The entities will continue to operate independently until the transaction closes.

Great American Outdoors group sportsman's warehouse cabela's bass pro hunting fishing acquisition stock purchase

* Along with Bass Pro and Cabelas, The American Outdoors Group owns the White River Marine Group (boats/trailers) and a selection of outdoors resorts in the USA.

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