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Posted on 10/20/2009 10:35:58 AM PDT by green iguana
After bad bets on cars and home loans, Cerberus Capital Management is turning to guns and bullets.
The private-equity firm is in advanced preparations for an initial public offering of Freedom Group Inc., said people familiar with the situation, hoping to sell shares in a little-known company it has built into a dominant player in the red-hot rifle-and-ammunition business.
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The origins of Freedom Group date to April 2006, with Cerberus's acquisition of Bushmaster Firearms. A year later, it paid $118 million for Remington Arms Co., the country's largest and oldest maker of rifles. Since then, Cerberus and its affiliates have acquired Marlin Firearms, a maker of lever-action rifles; Cobb Manufacturing; Dakota Arms LLC and DPMS Panther Arms, a large manufacturer of AR-15 rifles. Its acquisition binge shows no signs of slowing. Earlier this month, Remington purchased Advanced Armament Corp., a Norcross, Ga., maker of pistol silencers.
(Excerpt) Read more at online.wsj.com ...
Chrysler was one very deep hole.
Don’t forget GMAC - that one didn’t work out so well either.
They should have waited ‘til after the mid-terms next year. An IPO on a gun company now would probably be used to demagogue through some nasty legislation, and after a bruising mid-term for the DOP, they’d stand to be much more subdued about their totalitarian tendencies.
I must admire Cerberus’ courage, but not its business sense on the timing of this.
Buying at the top is never a good idea.
Cerberus has control of ALL of these? Anyone troubled by having a large concentration of firearms and ammo manufacturers controlled by one entity? I mean, it is only a small percentage of the companies that produce firearms and ammo, but I still worry....
I’m not concerned. The guys running Cerberus are mostly ex-military, some snake-eaters. George Kollitides is the guy running Freedom Group. He unsuccessfully ran for an NRA board seat whenever the last election was.
I tuned into Savage last night in the car and heard him do an ad for Kel-Tec handguns. I have never heard a handgun ad run on radio before. I’m very pro-2nd Amendment and go armed at all times, so it’s not a problem or an issue for me. Just a new and different thing. Anybody else notice it?
Weren’t these the guys that got steamrolled by the Administration in the Chrysler bankruptcy? I would say that Cerberus is not part of the current ruling gang in DC&NYC. Me thinks stocking up on guns and ammo ASAP is a good bet.
I saw TV ad for Henry rifles last week.
That’s interesting. Was it local or national or could you tell? It would seem to be an indication that the manufacturers know there is a growing wider market for personal defense which is a good thing.
I believe that it was an advertisement on the Fox News Channel. It was definitely a national commercial. I'm going to see if I can look it up on the internet.
Guys on gun forums were discussing the ad and said that you can find it on Youtube.
Anyone troubled by having a large concentration of firearms and ammo manufacturers controlled by one entity?
bttt
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