February 18, 2022 – The Merger of Bass Pro and Sportsman’s Warehouse is not going to take place. The buy-out effort has been halted. In late 2020, the Great American Outdoors Group announced a merger deal that would have allowed Sportsman’s Warehouse to be purchased by the Great American Outdoors Group. This group, which currently owns Cabela’s and Bass Pro, was expected to pay $785 million. Cabela’s was acquired by Great American for more than $4,000,000,000 in 2017 (four billion). Great American, based in Missouri, was going to pay $18 per share for Sportsman’s Warehouse. This is a substantial premium over the stock price. Sportsman’s Warehouse Holdings Inc. is now independent from its headquarters in West Jordan, Utah. According to the Springfield Missouri News-Leader: “Nearly one year after Bass Pro entered into an agreement for a merger with Utah-based Sportsman’s Warehouse Holdings Inc.,” a federal filing by Sportsman’s Warehouse dated Dec. 2, stated that the deal was canceled. According to the filing, both companies believed that the deal would not be approved by the Federal Trade Commission after receiving feedback. According to Bloomberg, the cancellation is due to President Biden’s 2021 Executive Order that directs Federal regulators to increase competition in the retail industry. Bloomberg also noted that Sportsman’s Warehouse stock fell significantly after the merger was canceled. This is due to a 2021 Executive Order by President Biden instructing Federal regulators to increase competition in retail industries.
Jon Barker, President/CEO at Sportsman’s Warehouse Holdings, Inc., was disappointed by the failure of the Bass Pro merger. His company’s revenues are growing however. According to SGB Online, “Sportsman’s Warehouse’s same store sales increased 48.3% in fiscal 2020 compared with fiscal 2019. Its hunting and shooting department led the gains, with a 70.0% increase in same-store sales. From 49.1% in the previous year, hunting and shooting now account for 57.6%. “Both Sportsman’s Warehouse and Bass Pro have Billions in Revenue
If the merger had been completed, approximately 110 stores and $1.45 billion in sales would have been added into the Great American Outdoors Group retail empire. SGBonline reported that Bass Pro’s revenues for the twelve months ending September 26, 2020 were $7.1 billion. In 2020, Sportsman’s Warehouse’s sales were $1.45 Billion.
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