Sportsman's Warehouse (NASDAQ:SPWH) is soaring 37% higher in morning trading Tuesday after the sporting goods retailer announced it agreed to be acquired by Great American Outdoors Group.
Not to be confused with American Outdoor Brands, the outdoor gear and accessories company spun off from firearms manufacturer Smith & Wesson Brands this past August, Great American Outdoors Group is the parent company of Bass Pro Shops and Cabela's.
Great American offered to buy Sportsman's Warehouse for $18 a share, a 42% premium above the price the sporting goods retailer closed at yesterday.
In a statement, Sportsman's Warehouse said, "The driving force behind the partnership is the two companies' similar histories and highly complementary business philosophies and geographic footprints," and it views the acquisition as an "unprecedented 'win-win' opportunity for outdoor enthusiasts."
Consumers have chosen to take on more outdoor activities during the coronavirus pandemic, making the sector very competitive and attractive.
Sportsman's Warehouse's board of directors unanimously approved the sale of the company, which is expected to close in the second half of 2021.