Gaylord Entertainment Co. is selling its stake in Bass Pro Group, owner of Bass Pro Shops, back to Bass Pro for $222 million. The deal is expected to close during the second quarter. Gaylord Entertainment, a public company that is traded on New York Stock Exchange, owns a 13% interest in the privately-held Bass Pro. At the $222 million asking price, the sale values Bass Pro Shops at $1.71 billion.
Bass Pro Group expects an outside investor to purchase the shares that Gaylord Entertainment is selling back to the retailer. The companies will continue their relationship through joint marketing agreements. Bass Pro will become a sponsor of Gaylord's Grand Ole Opry under a five-year agreement.
Gaylord Entertainment recently filed a 10K report detailing some of Bass Pro's financials. The filing shows that Bass Pro generated net income of $75.3 million in 2006 on sales of $2.08 billion. In 2005, it generated income of $5.2 million on sales of $1.09 billion. In 2004, Bass Pro earned $18.6 million on revenues of $932.4 million.
Under a recapitalization completed in December 2005, the filing noted that shareholders of Bass Pro, Inc. contributed their stock in Bass Pro, Inc. to Bass Pro Group, LLC, a newly-formed Delaware limited liability company. The majority owner of Bass Pro, Inc. also contributed equity interests in Tracker Marine, LLC, Big Cedar LLC and certain related assets to Bass Pro Group, LLC. Bass Pro opened six stores in 2006 with 37 now in operation.
