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Will Synovus (SNV) Purchase Cabela's (CAB) Financial Arm?
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Georgia-based Synovus Financial Corp. (SNV - Free Report) might turn out to be a potential buyer of the financial unit of outdoor goods retailer, Cabela's Incorporated . The bank is likely to buy Cabela's banking operation – World's Foremost Bank – which issues store-branded credit cards. This was first reported by the Wall Street Journal.
Bass Pro Shops – retailer of outdoor gear and apparel – was supposed to purchase the retail business of Cabela's in Oct 2016, while Virginia-based Capital One Financial Corporation (COF - Free Report) was expected to buy the banking unit. However, the deal did not materialize as the bank was undergoing the anti-money-laundering controls’ probe which delayed regulatory approvals.
Therefore, currently sources point toward Cabela's selling the financial unit to Synovus, which holds $30 billion in assets and has 250 branches across the south. Further, the bank will subsequently resell the credit card portfolio to Capital One Financial, while holding back about $1 billion in deposits. This arrangement is expected to facilitate the deal’s completion as Capital One Financial will be able to avoid in-depth regulatory review.
Further, according to ongoing talks in the market, Bass Pro is still anticipated to purchase the retail business of Cabela’s, which recorded revenue worth $3.6 billion in 2016. Notably, Bass Pro has financial assistance of The Goldman Sachs Group Inc. (GS - Free Report) and others.
Conclusion
Synovus’ results have been quite decent in the last quarter. We believe that the company’s focus on both organic and inorganic growth, together with cost containment efforts, will gradually pay off and aid bottom-line expansion in the subsequent years.
Synovus’ shares gained around 22.5% over the last six months, as compared with 26.5% growth recorded by the Zacks categorized Southeast Banks industry.
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Will Synovus (SNV) Purchase Cabela's (CAB) Financial Arm?
Georgia-based Synovus Financial Corp. (SNV - Free Report) might turn out to be a potential buyer of the financial unit of outdoor goods retailer, Cabela's Incorporated . The bank is likely to buy Cabela's banking operation – World's Foremost Bank – which issues store-branded credit cards. This was first reported by the Wall Street Journal.
Bass Pro Shops – retailer of outdoor gear and apparel – was supposed to purchase the retail business of Cabela's in Oct 2016, while Virginia-based Capital One Financial Corporation (COF - Free Report) was expected to buy the banking unit. However, the deal did not materialize as the bank was undergoing the anti-money-laundering controls’ probe which delayed regulatory approvals.
Therefore, currently sources point toward Cabela's selling the financial unit to Synovus, which holds $30 billion in assets and has 250 branches across the south. Further, the bank will subsequently resell the credit card portfolio to Capital One Financial, while holding back about $1 billion in deposits. This arrangement is expected to facilitate the deal’s completion as Capital One Financial will be able to avoid in-depth regulatory review.
Further, according to ongoing talks in the market, Bass Pro is still anticipated to purchase the retail business of Cabela’s, which recorded revenue worth $3.6 billion in 2016. Notably, Bass Pro has financial assistance of The Goldman Sachs Group Inc. (GS - Free Report) and others.
Conclusion
Synovus’ results have been quite decent in the last quarter. We believe that the company’s focus on both organic and inorganic growth, together with cost containment efforts, will gradually pay off and aid bottom-line expansion in the subsequent years.
Synovus’ shares gained around 22.5% over the last six months, as compared with 26.5% growth recorded by the Zacks categorized Southeast Banks industry.
At present, Synovus carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>