The rumor mill is spinning once again in the outdoor industry as two of the biggest players in the game are once again in the news.
The privately held Bass Pro Shops teamed up with Goldman Sachs’ private equity arm to map out an offer for Cabela’s Inc, according to the source who is close to those involved.
The two companies make up two of the largest outdoor retailers on the planet and facing immense competition online; have moved to designing gargantuan retail experiences that draw outdoors men and women to their locations across North America.
Currently speaking, Cabela’s has built over 80 retail stores in which are currently in operation with plans to open six additional locations in the future. Bass Pro, on the other hand, currently operates nearly 100 retail stores and Tracker Marine Centers with plans to open an additional 14 locations in the near future. Should their expansion go according to plan, they will be poised to have the lion’s share of the market, even without the prospective acquisition.
So far, everything we know is just chatter, but you have to make the assumption that this deal is going to end up coming to fruition sooner or later.
Not long ago, in December of 2015, Cabela’s reported that they were working closely with Guggenheim Securities LLC, exploring strategic alternatives which could include a sale.
The source has stated that if this is indeed the makings of a potential sale, the two sides are still very early on in the process.