Freedom Group being sold...?

[jeremy155rr]

Saw this article, found it interesting, it is yahoo...

 

http://news.yahoo.com/cerberus-sell-gunmaker-freedom-group-u-school-shooting-062303957--sector.html

 

(Reuters) - U.S. private equity firm Cerberus Capital Management said on Tuesday it will immediately begin selling its investment in gunmaker Freedom Group in light of last week's school shooting in Connecticut.

Pressure mounted on Cerberus as the California State Teachers' Retirement System (CalSTRS) said on Monday it was reviewing its investment with the private equity firm after the Connecticut school shooting.

CalSTRS had invested $751.4 million with Cerberus by the end of March 2012, according to its website.

Cerberus acquired firearms maker Bushmaster in 2006 and later merged it with other gun companies to create Freedom Group, which reported net sales of $677.3 million for the nine months ending September 2012, up from $564.6 million in the same period a year ago.

Bushmaster is the manufacturer of the AR 15 rifle used by the shooter in the Newtown, Connecticut killings that claimed 27 lives, including 20 school children.

The private equity firm said it will retain a financial adviser to sell its interests in Freedom Group, and will then return that capital to investors.

Founded in 1992 by Stephen Feinberg and William Richter, New York-based Cerberus has over $20 billion under management invested and shares its name with a mythical three-headed dog that in Greek mythology guards the entrance to the underworld.

Edited December 18, 2012 by jeremy155rr

[Oh Shoot]

Here is the actual statement from Cerberus:

 

http://www.heraldonline.com/2012/12/18/4491696/cerberus-capital-management-statement.html

 

Other news: Dick's has suspended sales of  "certain types of rifles" from stores nationwide. Guess we can surmise what types those are.

 

Walmart has removed Bushmaster from it's website catalog, maybe they're gonna pull ARs from stores too, wouldn't be surprised.

 

- OS

[Sam1]

The bad thing about this is that bushmaster will probably go out of business because of this. That's the exact kind of "evil name" they need to exploit what kind of weapon was being... I've heard his ar-15 called a "Bushmaster" more so than an assault rifle or ar-15.

 

I wish people were smart enough to unerstand to content instead of context

[Pa686]

I've heard his ar-15 called a "Bushmaster" more so than an assault rifle or ar-15.

 

I'd rather have them misguidedly attack a single company than the rifle itself.

 

Of course, it looks bad for gun enthusiasts as a whole when a large firm divests a profitable firearms manufacturer and claims it is for ethical reasons. A PE firm with ethics? Something smells fishy...

 

ETA:

Silly me, this isn't about ethics, this is about retaining a huge chunk of AUM, from the Wall Street Journal:

 

"Tuesday’s announcement follows a statement from the California State Teachers’ Retirement System, a large pension fund, that it was reviewing its investment in Cerberus in light of the firm’s holding in the Freedom Group."

 

Note that CALSTRS has $751M invested with Cerberus, out of their $154B portfolio. http://www.calstrs.com/investments/Invport.asp

Edited December 18, 2012 by Pa686

[JWC]

Maybe they'll just go after Bushmasters. Maybe just villify and make it out as they are the evil rifles and AR-15's are ok. Bait and Switch. Using the MSM against themselves. Then they can go under and come back with a different name. Another thought I have is to drop the A in AR and just use R-15. When anyone comments refer to your rifle as an R-15, they're nothing like AR-15's. The idiots will never know.

[R_Bert]

Here is the actual statement from Cerberus:

 

http://www.heraldonline.com/2012/12/18/4491696/cerberus-capital-management-statement.html

 

Good.  I hope every single one of those companies move to Knoxville, TN where they will be warmly received.

Edited December 18, 2012 by R_Bert

[Worriedman]

Good.  I hope every single one of those companies move to Knoxville, TN where they will be warmly received.

Don't kid yourself.

[nightrunner]

<blockquote class='ipsBlockquote'data-author="JWC" data-cid="862562" data-time="1355844336"><p>
Maybe they'll just go after Bushmasters. Maybe just villify and make it out as they are the evil rifles and AR-15's are ok. Bait and Switch. Using the MSM against themselves. Then they can go under and come back with a different name. Another thought I have is to drop the A in AR and just use R-15. When anyone comments refer to your rifle as an R-15, they're nothing like AR-15's. The idiots will never know.</p></blockquote>

I believe R-15 is owned or at least used by remington for their rifles but they are part of freedom group too so who knows.


This could be a good thing if somebody concerned with quality of firearms buys it then we might see a quality marlin made again

[mikegideon]

I have no love for Cerberus anyway. Maybe some quality owners with come around.

[RobertNashville]

The bad thing about this is that bushmaster will probably go out of business because of this. That's the exact kind of "evil name" they need to exploit what kind of weapon was being... I've heard his ar-15 called a "Bushmaster" more so than an assault rifle or ar-15.

 

I wish people were smart enough to unerstand to content instead of context

I've no doubt there will be a big push for a new AWB but whether they can actually get one through both houses or not is a very big IF at this point.

 

I suspect what we'll see is much more "under the table" type stuff rather than a frontal assault but I could be wrong...even very wrong.

Edited December 19, 2012 by RobertNashville

[nightrunner]

Call me crazy but if someone bought freedom group and dissolved it, it would be a huge blow to the firearms industry. No more:
AAC
DPMS
Bushmaster
Remington
Marlin
Para Ordnance
H&R
Dakota Arms

Tapco accessories
Barnes bullets

It would be a sad day

[Oh Shoot]

Call me crazy but if someone bought freedom group and dissolved it, it would be a huge blow to the firearms industry. No more:
AAC
DPMS
Bushmaster
Remington
Marlin
Para Ordnance
H&R
Dakota Arms

Tapco accessories
Barnes bullets

It would be a sad day

 

 

Nobody will "dissolve" any one of those individual companies as long as it can make its own living devoid of the others. Any that couldn't reorganize with a new buyer or as employee or public owned would of course go bankrupt.

 

Rather hard to see Remington doing that, which includes Marlin and H&R, even with an AWB/hi-cap ban. Matter of fact, if you consider the entire line of guns and ammo, seems Remmie would be hit less than many other of the major manufacturers, which have beau coup invested in AR and hi-cap handgun lines.

 

- OS

Edited December 19, 2012 by Oh Shoot

[R_Bert]

Good.  I hope every single one of those companies move to Knoxville, TN where they will be warmly received.

 

 

Don't kid yourself.

 

OK, more specifically, Anderson (Clinton/Lake City) or Campbell County (Jacksboro/Lafollette) would welcome them. Anderson already has a nuclear facility, and Campbell has catered to military industrial. 

 

City of Oak Ridge....well....They won't even let a Target store in, but they are expanding Kroger's and Panera Bread.

Edited December 19, 2012 by R_Bert

[Worriedman]

OK, more specifically, Anderson (Clinton/Lake City) or Campbell County (Jacksboro/Lafollette) would welcome them. Anderson already has a nuclear facility, and Campbell has catered to military industrial. 

 

City of Oak Ridge....well....They won't even let a Target store in, but they are expanding Kroger's and Panera Bread.

I have personally spoken with some of the top echelon leadership about approaching firearms and ammunition manufacturers to come to TN.  There was absolutely no interest in pursuing it from our "Supermajoirty" Republicans.

[R_Bert]

I have personally spoken with some of the top echelon leadership about approaching firearms and ammunition manufacturers to come to TN.  There was absolutely no interest in pursuing it from our "Supermajoirty" Republicans.

 

 

Strange that several of them prefer New England, but...what can you say to them, except "hows that working out for you ?"

 

also... I suppose that if they are sold, then new leadership/ownership may have different ideas.

 

Is Ronnie Barrett still happy ?

Edited December 20, 2012 by R_Bert

[Oh Shoot]

Strange that several of them prefer New England,...

 

Historic reasons, that's mostly where factories started in this country, and where the concentrated population was to support it.  Many just never moved out, though obviously some have, some bought existing buildings/production lines through the years as previous companies went under and whatnot.

 

Most new ones start elsewhere of course.

 

- OS

Edited December 20, 2012 by Oh Shoot