Bass Pro Shops Business Analysis

Throughout the past few decades, we have seen head-to-head competition between the two iconic American outdoor retailers, Bass Pro Shops and Cabela’s. Recently as of October 3rd, 2016, Bass Pro Shops made a decision that could change the competition in the entire outdoor market. Arriving to a definitive agreement, “Bass Pro Shops will acquire Cabela’s for $65.50 per share in cash, representing an aggregate transaction value of approximately $5.5 billion” (Crowe). They are being backed by one of the leading private equity investors in the world, Merchant Banking Division of Goldman Sachs and Pamplona. Business Insider states, “Goldman Sachs has committed $1.8 billion and Pamplona has committed $600 million for a total preferred financing commitment of $2.4 billion” (Crowe). With Cabela’s under their wing and sufficient backings with finances, Bass Pro Shops will continue to better serve customers who love the outdoors.

In addition, they have released publicly that they are keeping the Cabela’s brand name itself due to the significant value it holds and will bring to Bass Pro Shops. The story behind how these two companies started is fascinating. With the help of exceptional management, connections and business deals they have formed along the way; the outdoor industry can foresee the opportunities Bass Pro Shops will have as the largest outdoor retailer in the market, possibly giving greater competition than online giants like