Can Sportsman's Warehouse Thrive Despite Its Merger Falling Through?
After announcing in Dec. 2020 a deal to merge with Great Outdoors Group, parent company of the Cabela's and Bass Pro brands, Sportsman's Warehouse (NASDAQ: SPWH) revealed one year later the deal is dead. Shares fell 20% the day following the announcement as investors digested the unfavorable news. However, there are at least three things working in the company's favor that offer a silver lining with a bit of luck and good execution.
On Dec. 21, 2020, Great Outdoors Group shook hands with Sportsman's Warehouse on a deal to acquire the latter for $18 per share in cash. With Sportman's Warehouse stock trading at $12.65 per share immediately before the announcement, the deal price represented a substantial premium. Shares settled close to $18 for most of 2021.
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Source Fool.com
