04 Dec Cabela’s Exploring Strategic Alternatives
Cabela’s Inc.’s board of directors has begun exploring a wide range of strategic alternatives to enhance shareholder value.
“We continue to believe that our Vision 2020 strategy will position Cabela’s to be the world’s best omni-channel retailer, while driving improved performance in both revenue growth and profitability,” said Tommy Millner, Cabela’s chief executive officer. “That said, the board is committed to taking actions to enhance value for shareholders and believes it is an appropriate time to explore potential strategic options that may drive further value. As the board undertakes this exploration process, Cabela’s is focused on the execution of its business strategy and remains fully committed to serving our customers’ needs.”
“As we head into the holiday selling season, our stores are well-stocked and our outfitters are well-prepared to meet and exceed the expectations of our customers,” Mr. Millner said. “We are continuing to honor all of our commitments as usual. There have been no changes to the Cabela’s Club points program, the Club Visa card or any of the points customers have earned, including any Cabela’s gift cards that customers have bought or plan to buy in the future. I want to thank the many customers who are enrolled in our Club points program and who use our Club Visa card, who should continue to use their Club points and Club Visa cards just as they always have. We will continue to look for ways to make these programs even more rewarding in the coming year.”
Cabela’s is working with Guggenheim Securities, LLC as its financial advisor and Sidley Austin LLP and Koley Jessen P.C., L.L.O. as its legal counsel to assist in the strategic review. The board of directors and management team, working with advisers, plan to proceed in a timely and orderly manner, but have not set a definitive timetable for completion of this process. There can be no assurance that this review process will result in a sale transaction or other strategic alternative of any kind. The company said it does not intend to disclose developments or provide updates on the progress or status of this process unless it deems further disclosure is appropriate or required.
In October, investor Elliott Associates LP disclosed an 11 percent stake in Cabela’s and asked it to explore strategic alternatives, including a sale to a private equity firm. Privately held outdoor retailer Bass Pro Shops was looking to buy Cabela’s, Reuters reported in November.