The move would give Bass Pro the equity financing necessary to pursue Cabela’s and makes such a deal more likely, given the potential cost savings and synergies a combination of the two U.S. hunting and finishing retailers would bring, Reuters reported.
Bass Pro Shops operates 98 stores and Tracker Marine Centers across the U.S. and Canada, including a store north of Cincinnati.
Cabela’s recently opened a 70,000-square-foot store at 5500 Cornerstone North Blvd., in the Cornerstone at Centerville development off exit 7 of Interstate 675 near Wilmington Pike, and a location in West Chester Twp. The stores employ about 130 employees.
Sidney, Nebraska-based Cabela’s said in December it was working with investment bank Guggenheim Securities LLC to explore strategic alternatives including a sale, following pressure from activist hedge fund Elliott Management Corp.
Bass Pro’s and Goldman’s consortium face competition for Cabela’s from buyout firms, and the sale process is still in the early stages, accord to Reuters.
Bass Pro spokesman Jack Wlezian said the company wouldn’t comment on “media speculation” about a possible buyout of Cabela’s.
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