Cabela’s is sold for $5.5B, a win for Paul Singer

Singer’s Elliott Associates bought an 11 percent stake in the hunting supply chain last October and pressed the Springfield, Mo., chain to pursue strategic alternatives — including a sale.
On Monday, the 55-year old chain said it has agreed to a $65.50 per share takeover offer from rival Bass Pro Shops.
It was reported on July 14 that Bass Pro was the likely buyer after other suitors dropped out of the process. At that time, Cabela’s shares rose 2.7 percent, to $54.08.
The $5.5 billion deal — a 19.2 percent premium to Cabela’s Friday close — will nearly double the size of Bass Pro Shops.
Shares of Cabela’s jumped nearly 15 percent to $62.84 in early Monday trading.
Cabela’s has struggled with declining sales of apparel and footwear and has reported same-store sales growth in only one quarter in more than three years.
A unit of Goldman Sachs is partnering with Bass Pro Shops on the deal. In addition, Capital One Financial will buy Cabela’s credit card operation.
Bass Pro Shops will finance the deal through preferred equity financing commitments of $2.4 billion from Goldman Sachs and Pamplona Capital Management.

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