A federal government official said he was “happy” that a planned merger between Bass Pro Shops and Sportsman’s Warehouse has been called off.
Holly Vedova, director of the Competition Bureau of the Federal Trade Commission, expressed her joy at the deal failure in a press release dated Friday, December 3.
“After a thorough 11-month investigation by FTC staff, Sportsman’s Warehouse reported it has ended its plan to sell $ 785 million to competing specialty outdoor gear retailer, Great Outdoors, ”Vedova said in the statement. “Under its Bass Pro Shops and Cabela’s banners, Great Outdoors competes closely with Sportsman’s Warehouse to offer customers a wide and comprehensive assortment of in-store outdoor gear, alongside expert sales staff, creating an experience. unique shopping for outdoor enthusiasts. This competition has benefited customers in at least two dozen local markets across the United States.
“I am happy that Great Outdoors and Sportsman’s Warehouse have decided to drop their merger proposal, which would have hurt consumers due to rising prices, reduced product supply and lower quality. and service.
According to Sportsman’s Warehouse, the merger was called off due to the negative influence of the federal agency.
“The decision to terminate the merger deal follows comments from the Federal Trade Commission (FTC) which led the parties to believe they would not have obtained FTC clearance to complete the merger.” Sportsman’s Warehouse said on file.
Bass Pro and Cabela’s (which Bass Pro merged with in 2017) had a total of 169 stores when negotiations began with Sportsman’s Warehouse, which had 112 stores in operation. The Sportsman’s stores were typically about 1/4 the size of most Bass Pro Shops.
Colorado Attorney General Phil Weiser (R) also welcomed the end of the deal.
“Colorado consumers and outdoor enthusiasts scored a big win today with Sportsman’s Warehouse announcing it is canceling its merger with Great American Outdoors Group, which owns Bass Pro Shops and Cabela’s,” Weiser said. in a press release. “The merger, which would have combined two of America’s largest outdoor specialty store operators, threatened to hurt consumers and workers in the Denver, Colorado Springs and Grand Junction areas through higher prices, fewer options to outdoor equipment, the likely closure of some stores and loss of jobs.
The deal, announced on December 21, 2020, allowed Great American Outdoors Group to purchase Sportsman’s for $ 18 per share in cash, or approximately $ 800 million in total purchase price. The closing price of Sportsman’s share on December 20, 2020 was $ 12.65 per share. On Tuesday, December 7, around 10 a.m., the stock price was $ 13.13.
Great American Outdoors Group, which owns Bass Pro, Cabela’s and other outdoor related businesses, is privately owned.
Great American Outdoors Group will pay a $ 55 million termination fee to Sportsman’s as part of the merger termination agreement.
Bass Pro Shops and Sportsman’s Warehouse did not respond to Branson Tri-Lakes News requests for comment.