Sportsman’s Warehouse Merger with Bass Pro Cancelled
Big news in the Outdoor Sports retail industry — the Merger of Bass Pro with Sportsman’s Warehouse is NOT going to happen — the buy-out effort is halted. Under a planned merger deal, announced in late 2020, the Great American Outdoors Group, which now owns Bass Pro and Cabela’s, was going to purchase Sportsman’s Warehouse for $785 million. In 2017 Great American acquired Cabela’s for more than $4,000,000,000 (four billion). Great American (based in Missouri) was going to pay $18 a share for Sportsman’s Warehouse, a significant premium over the listed stock price. Sportsman’s Warehouse Holdings Inc. will now continue to operate independently from its HQ in West Jordan, Utah.
According to the Springfield Missouri News-Leader, the deal collapsed because of Federal Trade Commission (FTC) opposition, among other factors: “Nearly a year after Bass Pro entered into a merger agreement with Utah-based Sportsman’s Warehouse Holdings Inc., the deal is off, according to a federal filing dated Dec. 2 by Sportsman’s Warehouse. The filing stated that feedback from the Federal Trade Commission led both companies to believe that the deal would not get FTC approval.”
As listed in a Sportsman’s Warehouse SEC filing, Bass Pro’s parent company Great Outdoors LLC will pay Sportsman’s Warehouse $55 million to terminate the merger.
According to Bloomberg, the cancellation of the merger is related to a 2021 Executive Order by President Biden instructing Federal regulators to boost competition in retail industries. Bloomberg also noted Sportsman’s Warehouse stock dropped signficantly after the planned merger was canceled.
Sportsman’s Warehouse Revenues Boosted Dramatically by Hunting and Shooting Sales
Jon Barker, President/CEO of Sportsman’s Warehouse Holdings, Inc., was disappointed that the Bass Pro merger did not go forward. However his company’s revenues are booming. According to SGB Online: “Sportsman’s Warehouse’s same-store sales surged 48.3% in fiscal year 2020 compared to fiscal year 2019. The gains were led by its hunting and shooting department, which showed a same-store hike of 70.0%. Hunting and shooting grew to account for 57.6% of Sportsman’s Warehouse’s sales in the year, up from 49.1% the prior year.”
Both Bass Pro and Sportsman’s Warehouse Have Billions in Revenue
Had the merger gone through, approximately 110 stores (and $1.45 billion in sales) would have been added to the Great American Outdoors Group retail empire. SGB Online reported: “According to Moody’s, Bass Pro had revenues in the twelve months ended September 26, 2020, of $7.1 billion. Sportsman’s Warehouse’s sales in 2020 were $1.45 billion.”
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Tags: Bass Pro, Bass Pro Shops, Federal Regulation, FTC, Great American Outdoors Group, Merger Cancelled, SEC, Sportsman's Warehouse
This is a relief. Hooray for competition!
That’s great news for customers of Sportsman’s Warehouse. The merger of Cabela’s with Bass Pro really hurt the hunting/shooting customers of Cabela’s.
Thank goodness. The first thing that happened after Bass Pro took over Cabela’s was a hefty price increase to match Bass Pro pricing. I would always go to Cabela’s in Bristol VA because they were cheaper than Bass Pro on the same or very similar items. Not so after the acquisition by Bass Pro! The more competition for our dollars the better.
Have a Cabella’s two miles from my house and since the Bass Pro take-over , I refuse to shop there . They cut down all the shooting related items in half . Raised prices and the attitude f the Bass-Pro people is , “So what”? I’ll drive twelve miles to Sportsman’s , where at least they treat me like a valued customer .