Outdoor sporting goods retailer Sportsman’s Warehouse and Great Outdoors Group, the parent company of Bass Pro Shops, have terminated plans of a merger, according to a regulatory filing.
Great Outdoors first agreed to acquire Sportsman’s Warehouse in December 2020 for roughly $800 million. The merger is now off following feedback from the Federal Trade Commission indicating the two companies would not receive clearance to close the deal.
As a result, Great Outdoors will pay a $55 million termination fee to Sportsman’s Warehouse.
It is believed the deal would not be approved due to a call for regulators to boost competition across all industries following an executive order signed in July by President Joe Biden.
The regulatory pushback adds to a turbulent financial year for Sportsman’s Warehouse, which has a market value of $743 million.
- The Utah-based company reported $361.8 million in sales in fiscal Q2 2021, down $19.2 million compared to the same period last year.
- The company saw same-store sales decrease 9.9% during the fiscal second quarter compared to fiscal Q2 2020.
- It attributed the lackluster performance in fiscal Q2 2021 to lower demand across its fishing, camping, hunting, and shooting categories.
A privately held company, Great Outdoors generated $7.1 billion in revenue in the 12 months ended Sept. 26, 2020, according to investor service Moody’s. Great Outdoors merged with Cabela’s in 2017 in a deal valued at $4 billion.