Synovus Financial in Talks to Buy Cabela's Financial Arm
March 29 2017 - 4:42PM
Dow Jones News
By Liz Hoffman, Rachel Louise Ensign and AnnaMaria Andriotis
A small Georgia bank has emerged as the potential savior of Bass
Pro Shops's $4.5 billion takeover of outdoor-goods retailer
Cabela's Inc., according to people familiar with the matter.
The deal, struck in October, had two parts: Bass Pro agreed to
buy the retail business of Cabela's, while Capital One Financial
Corp. agreed to acquire its banking operation, which issues
store-branded credit cards.
But the deal ran into trouble after Capital One, one of the
country's largest credit-card companies, said it wouldn't be able
to get timely regulatory approval, amid investigations into its
anti-money-laundering controls.
Cabela's is now in talks to sell that business to Synovus
Financial Corp., a Georgia-based bank with about $30 billion in
assets and 250 branches across the south, the people said.
Under the plan being discussed, Synovus would resell the
credit-card portfolio to Capital One and keep the roughly $1
billion in deposits held by the Cabela's bank, the people said.
That could avoid an in-depth regulatory review for Capital One and
allow the deal to be completed faster, they said.
Closely held Bass Pro would still buy the retail business, which
generated $3.6 billion in revenue last year selling everything from
crossbows to boats. It has financial backing from Goldman Sachs
Group Inc. and others.
The talks, which have been fitful, remain ongoing and may not be
finalized, the people said.
Write to Liz Hoffman at liz.hoffman@wsj.com, Rachel Louise
Ensign at rachel.ensign@wsj.com and AnnaMaria Andriotis at
annamaria.andriotis@wsj.com
(END) Dow Jones Newswires
March 29, 2017 16:27 ET (20:27 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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