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Thread: Fallout - Cerberus to Sell "Freedom Group"

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    GuncoHolic Black Blade's Avatar
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    Default Fallout - Cerberus to Sell "Freedom Group"

    Cerberus to Sell Gunmaker Freedom Group



    The private equity firm Cerberus Capital Management said on Tuesday that it would sell its investment in the gunmaker Freedom Group in response to the school shootings last week in Connecticut.

    Cerberus acquired Bushmaster — the manufacturer of the rifle used by the gunman in the Newtown attacks that killed 27 people, including 20 schoolchildren — in 2006.

    The private equity giant later merged it with other gun companies to create Freedom Group, which reported net sales of $677.3 million for the nine months that ended in September 2012, a 20 percent increase compared with the same period last year.

    Sorkin: Wall Street, Invested in Firearms, Is Unlikely to Push for Reform
    How Freedom Group Became the Big Shot (Nov. 26, 2011)

    “It is apparent that the Sandy Hook tragedy was a watershed event that has raised the national debate on gun control to an unprecedented level,” Cerberus said in a news release.

    The private equity firm said it had made the investments in gun manufacturers on behalf of its clients, which include pension funds and other institutional investors. Cerberus added that it was the role of legislators to shape the country’s gun policy.

    “We believe that this decision allows us to meet our obligations to the investors whose interests we are entrusted to protect without being drawn into the national debate that is more properly pursued by those with the formal charter and public responsibility to do so,” Cerberus said.

    The private equity firm said it would retain a financial adviser to sell its interests in Freedom Group, and would return the proceeds to investors. Cerberus, based in New York, was founded in 1992 by William Richter and Stephen Feinberg, and has more than $20 billion of assets under management.

    Cerberus is one of several private equity firms that have holdings in gun manufacturers. Colt Defense, which was spun out of the maker of the .44-40 Colt revolver, is jointly owned by Sciens Capital Management, a fund advised by the Blackstone Group and another fund operated by Credit Suisse.

    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 Freedom Group.

    “At this point, our investment branch is examining the Cerberus investment to determine how best to move forward given the tragic events of last Friday in Newtown, Connecticut,” a spokesman for the Californian public pension fund told Reuters on Monday.

    Cerberus to Sell Gunmaker Freedom Group - NYTimes.com


    Black Blade: I remember when Cerberus was going to IPO "Freedom Group" and there was a lot of interest. Now they will sell the division for much less than they would have going public. I thought it was stupid to pull the IPO as public companies like Sturm-Ruger (RGR) and Smith & Wesson (SWHC) shares soared (in fact RGR has been a 8 bagger for me since 2009). Keep frosty people - the forces of evil are aligned against us.
    When you're born you get a ticket to the freak show. When you're born in America , you get a front row seat. - George Carlin


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    Angry White Man RetVet's Avatar
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    All the chicken littles are running with their heads cut off, scurrying like rats afraid of the cheese.

    It's really quite pathetic how so many turn yellow when push come shove, but we all know how money influences all decisions. Got to follow the rest of the sheep when the quest for a dollar is involved.
    " The world is a very dangerous place, not because of those who do evil, but because of those who do nothing about them." - Albert Einstein, 1879-1955


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    Happy Camper hcpookie's Avatar
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    Yep, its all about the money. I was just reviewing media comments from my senator who has an "A" rating from the NRA... now suddenly it is in the "best interest" to side with the pres on "sensible gun control". More worried about staying elected than REPRESENTING me. A crying shame.

    The worst part... we the people are too complacent to fight this. We already have our stockpile of ammo. We already have all the hi-cap mags we need. So it doesn't concern us. We talk about "the coming apocalypse" like we're going to be in a TV show. But when the REAL fighting comes through political action, we'll sit on our hands.
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    GuncoHolic Sprat's Avatar
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    seems Dicks sporting goods just joined in it pulled all the firearms out of the store surrounding the shooting and is considering all its stores
    I prefer Bass pro shop anyway
    Sprat and sprat1 are one and the same.

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    Gunco Regular Big Don's Avatar
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    I don't quite understand it. Freedom group made cerburus 1+ billion dollars in the last two years, and the pinko teacher's group only 750 million. That just doesn't pencil out. I guess chicken little is really screaming this time.

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    Gunco Regular Big Don's Avatar
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    P.S. I am glad to see Colorado, a liberal state, is selling firearms hand over fist. Channel 7 news said the regular 15 minute check has turned into 23 hours because of the back up.. Can't the polyticians see this?

  7. #7
    No Hope For Me 1biggun's Avatar
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    WELL IF THE ASSULT WEAPONS BILL PASSES A LOT OF THE COMPANYS THYE OWN WILL HAVE NOTHING OR AS MUCH TO SELL.

    WHAT MAKES ME SICK IS THE MEDIAS CONTANT LINE " AS THE NATION MOURNES"

    LETS BE HONEST THE NATION IS NOT MOURNING ITS BEING BOMBARDED WITHT HE MEDIA TELLING US TO. YES WE ALL FEEL BAD BUT 90% OF THE STUFF IS BEING FUELED BY THE MEDIA. THERE IS A DIFFERANCE BETWEEN MOURNING AN GETTING CAUGHT UP IN MEDIA FRENZIE AN TRYING TO BE PART OF SOME THING.

    IF DICK WONT SELL GUNS THERE LOSS HERE THEY DONT EVEN HAVE ASSULT STYLE WEAPONS SO ALL THERE HURTING IS THEM SLEVES.

    MAYBE THOSE COMPANYS CERBUS HOLD WILL GET BOUGHT BUY TRUE GUN ENTUSISTET AN THEY WLL MAKE A BETTER PRODUCT.

    WHAT NEEDS TO HAPPEN IS GUN OWNERS NED TO GET OFF THERE ASS AN DO SOMTHING.

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    Gunco Rookie throttle's Avatar
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    Ladies and Gents, this is a chance for those of us who vote and complain to put our money where our mouth is. Obama said he would bring change, I say let him have it, only on the terms of the people! We all need to bring change our way- contact your representatives and do it a lot. Push for stronger individual state control of EVERYTHING.
    That is the change we need. Leave out the emotion and the name calling, no one will take you seriously if you are rude and crude. Write down what you want and what you wish to convey (not after a couple of beers, please). Review it prior to sending, then have someone else (of the same beliefs) look it over so it makes sense.
    The original idea of this country was strong individual state governments, and a supporting Fed. We have allowed this to get reversed. I feel that each state, not our "elected" President and his followers, need to decide how best to deal with the current issues. I am here to tell you that Idaho (where I am) will have different issues
    and problems than New York, California, Florida etc. Until we get that back we have to take this to them and be loud. Bottom line, come to the table with logical suggestions, and solutions. If they hear from enough of us and the message is consistent and strong, we can make a difference, but this will only work if people get invovled. Sitting back and yelling "Yea! go get 'em" will yeald nothing. If you value your freedoms fight for them with the keyboard now! Make the phone calls now! Pass the message.It really is easier than ever, so no more excuses folks.
    If you don't fight you will loose the battle. The ball is in our court, even though they don't know it- whatcha gonna do? God bless America.
    Throttle.

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    Gunco Addicted for life j427x's Avatar
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    one has to think this was cerberus plan all along.

    it looks like a panic sale in the middle of a crisis might just break the back of the firearms industry --could it be this is what was in the stacked deck of cards all along?

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    Blacksmith Bill will6970's Avatar
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    Quote Originally Posted by j427x View Post
    one has to think this was cerberus plan all along.

    it looks like a panic sale in the middle of a crisis might just break the back of the firearms industry --could it be this is what was in the stacked deck of cards all along?
    Yes is the short answer. Please someone correct me if I'm wrong, but wasn't George Sorros involved in creating the Cerberus group?

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