According to a press statement, Sportsman’s Warehouse will be acquired by The Great American Outdoors, Group, the parent company of Bass Pro Shops and Cabela’s, for $18 in cash per share. Sportsman’s Warehouse has signed a legally binding agreement to become a part of the Great American Outdoors, Group, the parent business of Bass Pro Shops, Cabela’s, White River Marine Group, and several eco-resorts, to better serve its devoted consumers.
What is a Bass Pro Shop?
It sells a wide variety of sporting equipment and focuses on camping, hunting, and fishing. The company, which is based in Springfield, Missouri, is most known for its Outdoor World retail outlets, which are substantial buildings that provide a large selection of goods along with entertainment features like target ranges, aquariums, restaurants, and video games
What’s the reason behind the partnership?
- The mutually beneficial histories, corporate philosophies, and geographic reach of the two organizations serve as the impetus for the alliance. Both businesses have a passion for the outdoors, including boating, fishing, camping, and other outdoor pursuits.
- Similar to one another, both companies are highly regarded stores with well-earned reputations for having a wide selection of excellent brand-name and proprietary products, giving superb customer service, having a highly informed staff, and having a persistent enthusiasm for conservation. For outdoor enthusiasts, working together represents a previously unheard-of “win-win” opportunity.
- Being a part of the Great American Outdoors Group excites them. The top brands in the outdoor sector are united by this combination. Future-focused Sportman’s Warehouse colleagues will have more chances to assist outdoor enthusiasts thanks to the combined businesses.
- They are proud of the approximately 8,000 Sportsman’s Warehouse employees and the work they have done over the past 33 years to develop our brand. According to the CEO of Sportsman’s Warehouse Jon Barker, they anticipate a seamless transfer and the development of their cooperation.
More insights into the acquisition
- Sportsman’s Warehouse, which runs 112 outlets, has had an exceptional year so far despite the COVID-19 outbreak, in stark contrast to numerous others in the retail industry.
- The outdoor retailer’s sales climbed by more than 61% from January through the end of October. In December, CEO Jon Barker informed analysts that third-quarter demand increased across all of the company’s categories.
- According to a Seeking Alpha transcript, Barker claimed it was caused by a rise in hunting, camping, fishing, and hiking activities nationwide. Hunting participation has increased by two or threefold in some states, which helps to explain Sportsman’s Warehouse’s comparable firearm sales growth of almost 100%.
- This is consistent with the growth of other outdoor pursuits throughout the social isolation era. Due to consumers’ increased purchases of outdoor gear and other recreational goods, Dick’s has recorded its highest-ever revenues and earnings this year.
- With 169 locations combined, Sportsman’s Warehouse, Cabela’s, and Bass Pro would form a retail behemoth for outdoor sports. It happens at the same time as Dick’s exits the hunting market with the removal of its Field & Stream banner in favor of other categories of outdoor equipment, and other retailers take varying degrees of a step back from selling firearms.
The merger of these two market leaders, whose stores are destinations, comes about three years after Bass Pro acquired Cabela’s. In a news release, Bass Pro founder and CEO Johnny Morris, who also serves as the parent company’s chief executive, stated that the goal of joining the retailers was to provide their customers the best experience and to promote conservation as well.
In addition to accelerating product distribution, the acquisition would grant Sportsman’s Warehouse access to what the firms claimed to be the broadest assortments of fishing and hunting equipment, as well as boat and ATV brands. Additionally, it will now provide a price match assurance for the entire selection.