Bass Pro Shops lowers acquisition price for Cabela's

Bass Pro lowers price for Cabela's under new merger terms

In a related development, Cabela's has entered into agreements with Synovus Financial Corp. and Capital One Financial Corp.to sell its credit card business, known as World's Foremost Bank.

Bass Pro will acquire Cabela's for $61.50 per share, lower than the originally agreed upon $65.50-per-share price, Cabela's said.

Shares of Cabellas (CAB) were up 7.28% Tuesday following an announcement late Monday that the outdoor retailer agreed to take a $500 million price cut on its sale to Bass Pro Shops and restructure a deal to sell its credit card unit as it looks to gain regulatory approval for its previously announced sale.

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. Synovus would sell Cabela's credit card assets and liabilities to Capital One and keep the deposits.

The new merger terms come amid regulatory scrutiny of the deal, although Cabela's did not offer a reason for the revised price.

Capital One had said that banking regulators questioned the deal because of an unrelated issue.

In the same statement, 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".

The deal will combine Cabela's 85 stores, which have a stronger U.S. Northwest presence, with Bass Pro's roughly 100 locations that are concentrated in the U.S. Southeast.

Cabela's said its board approved the proposed deal, which it expects would close in the third quarter of 2017.

"We look forward to completing these transactions for the benefit of our shareholders, Outfitters and outdoor enthusiasts".

There's also considerable overlap in their customer bases: Bass Pro noted that 45% of its customers also frequent Cabela's. "[Bass Pro Shops and Cabela's] really are the best possible example of direct competitors", Wagner told Retail Dive previous year. It also didn't help that Cabela's had poor sales results in the important fourth quarter of the year, the Omaha World-Herald reports.

In January, Cabela's said in a regulatory filing that it received a second request for information from the Federal Trade Commission.

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