Bass Pro Shops will pay about $500 million less for Cabela's under the new terms of the companies' merger agreement announced Monday.
Under the Amended Merger Agreement, Bass Pro Shops will acquire Cabela’s for $61.50 per share in cash, representing an aggregate transaction value of approximately $5.0 billion. Cabela’s Board of Directors unanimously approved the transaction, which is expected to close in the third quarter of 2017, subject to Cabela’s shareholder approval, regulatory approvals and other customary closing conditions.
When the deal was first announced in October, it called for a price of $65.50 per share in cash or an aggregate transaction value of approximately $5.5 billion.
“We’re excited to announce this agreement, which allows us to look ahead with greater certainty toward the completion of our merger with Bass Pro Shops and offers a positive step forward for all parties,” said Tommy Millner, Cabela’s CEO. “We look forward to completing these transactions for the benefit of our shareholders, Outfitters and outdoor enthusiasts.”
Johnny Morris, founder and CEO of Bass Pro Shops said, “We remain excited about the exceptional opportunity we have to continue to serve sportsmen and sportswomen by bringing together Cabela’s, Bass Pro Shops and White River Marine Group. Today’s announcement is an important step forward and we are excited about the opportunity to continue celebrating the great Cabela’s brand with ours as one unified outdoor family for our customers and for conservation.”
Cabela's also announced that it has entered into agreements with subsidiaries of Synovus Financial Corp. and Capital One Financial Corporation in connection with the sale of the assets and liabilities of Cabela’s wholly owned bank subsidiary, World’s Foremost Bank.
Synovus Bank, a bank subsidiary of Synovus Financial Corp., a financial services company based in Columbus, Georgia, with approximately $30 billion in assets, will acquire certain assets and assume certain liabilities of the bank, including deposits totaling approximately $1.2 billion. Following the completion of the sale of the bank’s assets and liabilities, Synovus will sell the bank’s credit card assets and related liabilities to Capital One. Synovus will retain the bank’s deposits.
As originally announced, Capital One will be the exclusive issuing partner of Cabela's branded CLUB Visa program pursuant to a 10-year program agreement. Capital One intends to continue to operate the Cabela’s CLUB servicing center in Lincoln, Nebraska.
The Bass Pro Shops merger remains subject to approval by Cabela’s shareholders, as well as antitrust clearance and other customary closing conditions. The bank transaction is subject to regulatory approvals by Synovus’s primary bank regulators and other customary closing conditions. The bank transaction will close immediately prior to the closing of the Bass Pro Shops merger.