BPS to buy Cabela's?

[Iclass]

Supposed to be announced today

[ness]

Article here today. Stock up big today.

[Bill Babler]

Yes this is really interesting.  If you will look it seems like a joint pursuit.  We just had one of the very top folks from Bass Pro's accounting department staying here at the Lodge.  Her and her husband have stayed with us twice and I deer hunt near his lease in Northern Missouri.   She has been with them since the Brown Derby days and came to work for Johnny from the start.  Bout ready to retire.

She as you can imagine is very Pro-Bass Pro Shop.  She did say that currently they have extended themselves quite a bit with the purchase of the new boat companies the purchase of Buffalo Ridge and  the rebuilding of not only Top of the Rock and creating new golf courses but also the Pyramid and Big Cedar.  Buffalo Ridge is currently undergoing an 8 figure expansion above the initial cost of the complex.  They also have Infinity Hills and the new Shoot Academy under construction.  Lots more millions of dollars, in just these two ventures.

There has been quite a bit of shaking up going on at Big Cedar to make it self sustaining.  It is not to that point.  With the additional monies they have spent there the last 5 years including the convention center and the total rebuild of Top of the Rock campus, it has to be supported by Bass Pro Shop.  She did not give me a number, but said the day to day resort operations at that point exceed the revenue from its lodging credits.  This encompasses Top of the Rock. but does not include Wilderness Club which is the Time Share property and is not fully owned by BP but a joint venture with another individual.

They are also expanding services at Dogwood Canyon and for the first time ever, had to slow down construction on that project to move construction help to other more needy projects.  Most often they would just hire additional crews, but currently that is not available under some financial constraints.

She went on to say at this point she thought that if the buy out of Cabelas took place BP would not be a majority owner but a partner to a lesser degree.  She says she has been wrong many times however in predicting Johnny's mind.  She said you don't get where he is without taking financial risks.  She did point out that they have all not worked out, but no body bats 100%

This conversation was just a living room chat and really she said nothing that we don't already know, but it was very nice visiting with her.

[crazy4fishin]

Good additional information Bill - I am not surprised by her comments on BPS extending themselves. All you have to do is look around and see they have been spending $$$ at an aggressive rate i.e. The Pyramid, Top of the Rock, Ranger etc. I would love to take a peek at their balance sheet one time.

To BPS's credit that is one reason to stay private, it is your money and you can do with it what you want - being a Nebraskan all my life Cabela's was "the place" to stop at and get gear for many years....but to fuel their growth and even to sustain them selves they had to or should I say wanted to go to the outside money...that has risks as you are opening the door to folks that are after returns and do not understand the culture and will cut up a company for the quick dollar leaving the proverbial dead bodies behind. Heck we are seeing this right now in Omaha with Con-Agra Foods.

I am not sure where or how this will end but I hope it will not end up with people losing jobs - not many things worse than coming home at the end of the day and have to tell your spouse that it was your last day. 

Well I had better get off my soap box...thanks internet friends! 

C4F