In a story published Thursday morning, the agency cited "people familiar with the matter" as it reported that "Bass Pro is working with an investment bank on the potential offer," and that Cabela's "has recently started to explore its options and has also reached out to private equity firms to solicit interest."
Bass Pro declined to comment for the Reuters report, while Cabela's did not respond to the news agency's request for comment. However it's typical of most public companies to not comment on market rumors.
Bass Pro is a privately-held company that has largely kept mum on its financials over the years. Founder Johnny Morris sold fishing supplies in the back of a Brown Derby liquor store owned by his father before opening his first standalone store in Springfield. The company's first location outside Missouri didn't come until 1995, when a location opened in Atlanta, but the company has since expanded to more than 70 stores in the United States and Canada. Forbes estimates Morris' net worth at $4.1 billion.
Sidney, Nebraska-based Cabela's, which was founded by Dick Cabela in 1961, had 67 stores as of April. The company went public in 2004, but its stock has been steadily declining since early 2014. At close of trading Wednesday, shares of CAB were done 25 percent this year.
Cabela's, which had total revenue of $3.6 billion in 2014, has recently been targeted by a so-called activist investor. Elliott Management Corp. said in late October that it owns 6 percent of Cabela's shares and holds options to buy another 5 percent. Elliott said in documents filed with the Securities and Exchange Commission that it thinks Cabela's is undervalued, and that the company should explore strategies to boost its stock price, including a sale to a private equity firm.
Shares of Cabela's are up 7 percent since the Reuters report was released.
Both chains are known for their efforts to replicate an outdoor setting in their oversized stores, through taxidermy, water features and the like. Bass Pro's locations are largely concentrated in the Midwest and eastern United States, while Cabela's has a greater number of stores in the western part of the country.