Privately held outdoors retailer Bass Pro Shops has partnered with Goldman Sachs Group Inc's private equity arm to make an offer for U.S. hunting and fishing store chain Cabela's Inc, people familiar with the matter said.
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The move gives Bass Pro the equity financing necessary to pursue Cabela's and makes such a deal more likely, given the potential cost savings and synergies a combination of the two U.S. hunting and finishing retailers would bring.
Sidney, Nebraska-based Cabela's said in December it was working with investment bank Guggenheim Securities LLC to explore strategic alternatives including a sale, following pressure from activist hedge fund Elliott Management Corp.
Bass Pro's and Goldman's consortium face competition for Cabela's from buyout firms, and the sale process is still in the early stages, the sources said on Tuesday.
Cabela's has also been exploring selling its credit card business separately and received expressions of interest from other potential buyers, the sources added.
The sources asked not to be identified because the deliberations are confidential. Bass Pro and Cabela's did not respond to requests for comment, while Goldman declined to comment.
(Reporting by Lauren Hirsch and Greg Roumeliotis in New York; Editing by Jeffrey Benkoe)