FED APPROVES SALE OF CABELA’S CREDIT CARD BUSINESS; ELIMINATES LAST HURDLE IN BASS PRO SHOPS ACQUISITION
The Federal Reserve System has approved the proposed acquisition of World’s Foremost Bank (Cabela’s credit card business) by Synovus Bank, eliminating the last significant hurdle in Bass Pro Shops’ purchase of Cabela’s (CAB). Under the proposed deal, Synovus (SNV) would assume $1.2 billion in deposits, $4.1 billion in non-deposit liabilities and the balance of World’s assets, approximated to total $5.7 billion. Capital One (COF) would take over credit card receivables upon completion of the deal. Back in July, Cabela’s shareholders overwhelmingly voted (78%) in favor of selling the retail business for $4.2 billion. The deal is expected to close by October 3rd.
Howie Long-Short: Cabela’s shareholders are breathing a sigh of relief, as the Fed’s October 3rd deadline was quickly approaching. The company recently reported Q2 profits/earnings, with YOY same store sales down 9.7% and profits down 25% from 2016 figures. Had the deal not been approved, Bass Pro Shops almost certainly would have walked away or demanded a lower sales price.
Fan Marino: There is apparently a trend of teenagers jumping into the large aquariums at Bass Pro Shops. Anything for the Snapchat!