Bass Pro Shops called off a planned acquisition of West Jordan, Utah-based Sportsman’s Warehouse Holdings Inc. (Nasdaq: SPWH) as both companies cited hurdles to meet Federal Trade Commission approval.
Bass Pro parent company Great American Outdoors Group agreed to pay a $55 million termination fee to Sportsman's Warehouse, according to a U.S. Securities and Exchange Commission filing. The termination agreement became effective Dec. 2.
"The decision to terminate the merger agreement follows feedback from the Federal Trade Commission that led the parties to believe that they would not have obtained FTC clearance to consummate the merger," states the SEC filing by Sportsman's Warehouse.
The roughly $785 million deal would have given Bass Pro more than 110 additional stores, according to past reporting. Bass Pro, which purchased Cabela's in 2017 for $5 billion, operates around 170 stores.
During the second quarter, Sportsman's Warehouse's net income dropped to $17.7 million from $32.5 million a year earlier, according to a news release.
SPWH shares were trading at $13.47 as of 9:46 a.m., compared with a 52-week range of $11.29 to $18.08 per share.
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