US-based outdoor retail giant Cabela’s has reached into agreements with subsidiaries of Synovus Financial and Capital One Financial in connection with the disposal of the assets and liabilities of Cabela’s wholly owned bank subsidiary, World’s Foremost Bank.
Under the terms of the agreements, Synovus Bank, a bank subsidiary of Synovus Financial, will purchase certain assets and assume certain liabilities of World’s Foremost Bank, including deposits that sums up to nearly $1.2bn.
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After closing of the sale of the World’s Foremost Bank’s assets and liabilities, Synovus will divest the bank’s credit card assets and related liabilities to Capital One; and retain the bank’s deposits.
As per the original announcement made in October 2016, Capital One will act as the exclusive issuing partner of Cabela’s branded CLUB Visa programme for a 10-year period.
Cabela’s CEO Tommy Millner said: “We’re excited to announce this agreement, which allows us to look ahead with greater certainty toward the completion of our merger with Bass Pro Shops and offers a positive step forward for all parties.
“We look forward to completing these transactions for the benefit of our shareholders, Outfitters and outdoor enthusiasts.”
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By GlobalDataThe transaction is subject to regulatory approvals by Synovus’s primary bank regulators and other customary closing conditions.
