Bass Pro Shops is considering a bid for Cabela's, as interest in the Nebraska-based chain heats up.
Privately-held Bass Pro is reportedly in talks to buy Cabela's, according to Reuters. Cabela's is also the target of a bid by New York investment firm Elliot Management, which acquired an 11 percent stake in the company last month.
Cabela's has not commented on either Elliot's interest nor confirmed it is in talks with Bass Pro Shops. Sources in the Reuters report asked to remain anonymous. When activist investors such as Elliot Management make unsolicited bids for a company, it's not unusual for that company to seek investment partners or merger opportunities elsewhere. That could be the case here.
Publicly traded Cabela's has slowed store expansion as profits decline.
|View Cabela's full 2015 fact sheet|
Both Cabela's and Bass Pro operate large destination stores that combine dining and lifestyle displays, and host events that appeal to the outdoor enthusiast. Both operate similarly sized formats, averaging roughly 150,000 sq. ft.
In August, Bass Pro opened a 130,000 sq. ft. mega store in Brandon, Florida, that offered a good deal more than outdoor goods. Shoppers can grab a drink, have a bite to eat, and peruse a room filled with hunting trophies.
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