OMAHA, NEB.: Outdoor gear giant Bass Pro is snapping up rival Cabela’s in a $4.5 billion deal announced Monday.
Both chains’ stores have become retail destinations for outdoors enthusiasts; until recently, their nearest locations to Akron were at least a two-hour drive away.
In August, Cabela’s opened a store in Avon, west of Cleveland.
A Bass Pro Shops store has been on the drawing board for Boston Heights, but its future was unclear Monday following word of the merger.
Boston Heights Mayor Bill Goncy said village officials were in touch with Bass officials as recently as last week and indicated the plans were still to build in 2017 or 2018.
“I’m thinking it’s going to go forward. I’ve got a pretty positive thought on it, but when something like this occurs — a big buyout — you have to take a step back, look at it, find out ‘How are we going to proceed and when?’ ” Goncy said.
Bass’ holding company has owned the land for three years and paid the developer of the shopping area, which has a new Costco, to name the street Bass Pro Drive, he said.
Bass Pro is paying Cabela’s shareholders $65.50 cash per share, a 19 percent premium to Friday’s closing price.
The companies valued the deal at $5.5 billion, with the inclusion of debt.
The deal combines two companies known for their giant destination superstores.
It also creates uncertainty about jobs in Cabela’s home state of Nebraska.
The combined companies plan to keep some operations in Sidney and Lincoln, Neb., but it’s not immediately clear how many jobs might be lost.
Cabela’s employs about 2,000 people in Sidney, which has about 7,000 residents.
State Sen. Ken Schilz, who represents the area, said the deal is concerning because of the duplication between the two companies’ headquarters that will be eliminated.
“We’ll just have to wait and see what Bass Pro does. I’m sure most folks in Sidney are pretty nervous this morning,” Schilz said.
Activist investment firm Elliott Management began pushing for significant changes at Cabela’s last fall. Elliott owns 7.4 percent of Cabela’s shares and holds options to buy another 3.8 percent.
A sale of Cabela’s has been a distinct possibility ever since the company announced a review of its strategic options last December, but many in Sidney weren’t ready to believe it could happen.
Bass Pro founder and CEO Johnny Morris said he hopes to continue growing the Cabela’s brand alongside his privately held Springfield, Mo., based chain.