In the original deal announced in October, Bass Pro Shops agreed to pay $65.60 per share, or about $5.5 billion, for Cabela's.
Under the terms of the agreements, Synovus Bank will acquire certain assets and assume certain liabilities of Cabela's bank, including deposits of about $1.2 billion.
Bass Pro Shops and Cabela's hope the deal better positions both outdoor retail brands for the future, as online behemoths such as Amazon.com Inc.
The renegotiation of the deal was necessary after Capital One ran into issues getting regulatory approval to buy World's Foremost Bank. Capital One previously had agreed to pay about $200 million above what the assets of World's Foremost Bank were worth. Cabela's board of directors unanimously approved the change; now it's up to the shareholders (and the Federal Trade Commission).
Bass Pro and Cabela's didn't specifically address the reason for the lower bid.
Cabela's Incorporated's CAB stock price continues to climb Tuesday, up over 7%, after its once-questioned buyout by fellow outdoor retail giant Bass Pro Shops cleared a pivotal hurdle. Cabela's said in a December regulatory filing that it would explore "alternative structures" to get the deal done. Synovus will, in turn, retain the deposits and sell the credit card assets and liabilities to Capital One.
The purchase could impact Bristol business as the twin city is one of the rare locations in the US that has both a Bass Pro Shops and Cabelas in the same market- separated by just a few miles on Intestate 81.
"We're excited to announce this agreement, which allows us to look ahead with greater certainty toward the completion of our merger with Bass Pro Shops and offers a positive step forward for all parties", Tommy Millner, Cabela's chief executive, said in a prepared statement. The similarities and overlap make a merger both rational and a target of careful scrutiny from regulators, according to Scott Wagner, an antitrust expert and partner in law firm Bilzin Sumberg's litigation group - and, clearly, close scrutiny is now ongoing.
Cabela's employs roughly 2,000 of the 6,800 people who live there, but the headquarters would move to Springfield, Missouri - Bass Pro's home - once the deal closes. COF will buy Cabela's credit card portfolio.
"This is good news for Cabela's as a company, good news for Cabela's shareholders, and it's also good news for people who work there", Gordon said. These sinister companies because many appear to be sound investments.