Sportsman’s Warehouse (SPWH) - Get Report shares screamed higher Tuesday after the outdoor sporting goods retailer agreed to be bought by Great American Outdoors, parent of Bass Pro Shops, for $785 million in cash.
Great American will pay $18 a share for Sportsman’s Warehouse, a 42% premium from Monday’s close, and will remain private.
Sportsman’s Warehouse traded at $17.15, up 35.57% in premarket trading. The stock jumped 58% year to date, even before Tuesday’s move.
“The driving force behind the partnership is the two companies’ similar histories and highly complementary business philosophies and geographic footprints,” the companies said in a statement. “Both entities share a passion with their customers for fishing, camping, hunting, boating and other outdoor activities.”
Sportsman’s Warehouse is based in West Jordan, Utah; Great American is based in Springfield, Mo.
“The partnership will invite Sportsman’s Warehouse employees and customers to become a part of something bigger - a legendary commitment to conservation,” the companies said..
The transaction is expected to close in the second half of 2021.