February 18th, 2022

Sportsman’s Warehouse Merger with Bass Pro Cancelled

Bass Pro Sportsman's warehouse merger 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.

Bass Pro Sportsman's warehouse merger cancelled

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.”

Bass Pro Sportsman's warehouse merger cancelled

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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