On Monday, retailer Sportsman’s Warehouse announced that they have been bought by the Great American Outdoors Group, which owns Bass Pro Shops and Cabela’s.
Sportsman’s Warehouse is joining the Great American Outdoors Group “in an effort to better serve its loyal customers,” according to a news release from the company. The conglomerate purchased the retailer for $18 per share in cash. On the day of the announcement, that represented a 42.2% premium over the company’s stock market value. However, Sportsman’s share prices have skyrocketed since their announcement.
The news release shared details on why the partnership will be a good fit for both companies. They said the two companies have similar histories. Likewise, they also share similar business philosophies and geographic footprints. Each of the entities focuses on outdoor sports including fishing, camping, hunting, boating and other outdoor activities. The press release calls the new partnership “an unprecedented ‘win-win’ opportunity for outdoor enthusiasts.”
“We are excited to be joining the Great American Outdoors Group. This merger brings together the greatest brands in the outdoor industry. I couldn’t be more proud of the nearly 8,000 Sportsman’s Warehouse associates and their success in building our brand over the last 33 years. We look forward to a smooth transition and building our partnership,” said Sportsman’s Warehouse CEO Jon Barker.
Bass Pro Shops Founder Calls It a ‘Happy Day’ for Outdoor Enthusiasts
The Sportsman’s Warehouse’s Board of Directors unanimously approved the new partnership. Executives expect the transaction to close during the second half of next year without any financing conditions. As for now, the companies will continue to operate independently until the transaction closes in 2021.
“Today is a happy day for our companies, outdoor enthusiasts and for the cause of conservation. By combining our best practices, our aim is to give our customers a best-of-the-best experience while further uniting them to support conservation,” said Bass Pro Shops Founder and Great American Outdoors Group Leader, Johnny Morris.
The Sportsman’s news release stated that “customers can expect all of what they love now plus a whole lot more.” For example, widely expanded product offerings that include access to the world’s largest selection of premium fishing tackle. Additionally, access to the largest selection of premium hunting gear and the leading boat brands, side-by-sides and ATV’s.
Sportsman’s Warehouse customers will also be able to take advantage of The Great American Outdoors Group’s “Low Price Guarantee.” The company will now match or beat any qualified competing offer in-store or online. In addition to pricing benefits, Sportsman’s customers will have greater convenience due to expanded online services and selection.