Outdoor chain Bass Pro Shops will be acquiring rival Cabela’s in a deal worth $5.5 billion. Upon the acquisition’s closing, Bass Pro Shops will double its store count in North America. The deal will be financed through preferred equity financing commitments of $2.4 billion from Goldman Sachs and Pamplona Capital Management. Closing is slated for the first half of next year.

Cabela’s has been struggling with declining sales, reporting same-store sales growth in only one quarter during the past three years. The retailer has been under pressure from Elliott Associates, an activist hedge fund that owns an 11.1% stake in the company, to find strategic alternatives.

Upon closing, Bass Pro Shops will also commence a partnership agreement with Capital One, which will take on servicing Cabela’s CLUB, Cabela’s co-branded credit card.

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