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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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March 12th, 2014

Tech Company Offers $1.082 Billion for Remington Outdoor Group

Remington Outdoor Company Freedom Group Stock Sale Take-over Global Digital SolutionsBillion-dollar buyout of Big Green? Will a tech company with digital security/smart-gun technology take over Remington Outdoor Company? This is either the biggest business story of the year in the gun industry, or much ado about nothing — simply a publicity stunt by Global Digital Solutions, Inc. (GDSI).

Here’s the background. On March 11, 2014, GDSI announced that it was offering to acquire Remington Outdoor Company (previously known as Freedom Group), for $1.082 billion in cash plus shares of GDSI common stock. In connection with this offer, GDSI filed a Form 8-K with the SEC regarding three proposed transactions, including an unsolicited letter of intent to acquire Remington Outdoor Company, Inc. (Remington). The Form 8-K can viewed on the GDSE website.

Despite the Form 8-K filing, some observers believe that the GDSI buy-out offer is nothing more than a publicity stunt. According to the Shooting Wire, “Executives with Remington Outdoor Company (Remington) have described yesterday’s … announcement of plans by Global Digital Solutions to acquire Remington as ‘attention seeking in its worst form’.” That doesn’t sound like Remington is giving much credence to the $1.082 billion buy-out offer.

Is this for real? Will a company that has developed RFID tags and “smart-gun” technology acquire Remington, and related brands Bushmaster, DPMS, Marlin, H&R, AAC, Dakota Arms, Para USA and Barnes Bullets? What’s in it for GDSI? For one thing, Remington is generating a lot of cash right now. Remington Outdoor Company has estimated that its net sales for 2013 will be in the range of $1.250 billion to $1.275 billion and that its adjusted EBITDA will be in the range of $235 million to $240 million.

Richard Sullivan, CEO of GDSI, declared there are “powerful synergies” between Remington’s core businesses and the technologies GDSI has developed such as RFID tags and GPS tracking units. As reported on the CNN Money website, Sullivan said that “cyber-based technologies, coupled with enhanced digital product development” will be increasingly important to the military armament industry. That industry, Sullivan added, is “evolving rapidly toward a RFID/WiFi-enabled technology platform.” Remington is ripe for a high-tech overhaul, Sullivan believes: “In this dynamic environment, we see enormous opportunity to consolidate this market with a program of targeted acquisitions, including the proposed Freedom [Remington] transaction. Technological convergence is the future in the cyber/smart arms arena and we’re eager to leverage our proven history of success by helping Freedom and others navigate the transition from analog to digital.”

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May 28th, 2010

Bane Reports on Freedom Group IPO and Bushmaster ACR

In his latest Weekly Video Podcast (#22) Michael Bane, host of DownRange TV, tests the new Bushmaster ACR at the TiG Training Facility in Tennessee. While this new reifle may interest our readers, Bane also discusses the latest status of the Freedom Group’s efforts to “go public”. The Freedom Group is a Cerberus-owned consortium of firearms/security companies including AAC, Barnes Bullets, Bushmaster, Dakota Arms, DPMS, H&R, Marlin, and Remington. A public offering of Freedom Group shares is potentially a very big deal in the firearms industry. This week, Bane explains, the Freedom Group made a presentation to the SEC in support of its future Initial Public Offering (IPO). Click on the image below to watch Bane’s latest video report. (NOTE: you may want to turn down the volume on your speakers BEFORE clicking link, particularly if you are at work).

Michael Bane Downrange TV

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