Bass Pro Shops has partnered with the private equity arm of Goldman Sachs Group as it prepares to make a move to acquire rival Cabela's, according to Reuters.
Bass Pro's interest in acquiring Cabela's was first reported in November but the latest maneuver helps the privately held chain acquire the needed equity to move forward.
Publicly traded Cabela's has slowed store expansion as profits declined.
Cabela's said in December it was exploring strategic alternatives including a sale of the retail operations or various parts of its business including the credit card unit. It has received bids from interested parties, according to sources close to the matter. No details have been released.
Sporting goods and outdoor retailers have been under pressure, but Bass Pro and Cabela's could be a good fit. Both operate large destination stores averaging roughly 150,000 sq. ft. that combine dining and lifestyle displays, and host events that appeal to the outdoor enthusiast.
- see this Reuters article