Sportsman’s Warehouse, Great Outdoors cancel merger after FTC feedback

Sportsman’s Warehouse and Great Outdoors Group agreed to terminate their merger agreement effective immediately, Sportsman’s disclosed in a regulatory filing. The decision to terminate the merger follows feedback from the Federal Trade Commission “that led the parties to believe that they would not have obtained FTC clearance to consummate the Merger.” Under the termination agreement, Great Outdoors Group agreed to pay Sportsman’s Warehouse the parent termination fee of $55M by wire transfer of immediately available funds concurrently with the execution of the termination agreement. Shares of Sportsman’s Warehouse are down 8%, or $1.34, to $15.60 following the news.