Cerberus Capital

[gunslinger15]

I saw today where Cerberus capital is selling freedom group. Ill be interested to see where these companies end up in the future! Hopefully somewhere that can restore some craftsmanship and quality control.
-Gunslinger

 

[Akita1]

Cerberus is a PE fund - this is actually an abnormal move for them given that, at their core, they are opportunists that are looking for significant multiples on their investments in an exit/terminal event. Their move is driven by CalSTERS who wants out because Freedom owns Bushmaster (think Sandy Hook), as well as Remington, Marlin, Advanced, and when CalSTERS calls, investment fund managers move. They would have kept it for years to come if CalSTERS hadn't called and guilted them into it: "sell it or we'll invest our $ elsewhere" was most likely the message. Cerberus is simply bowing to the pressure.

 

[oneounceload]

Calpers has 750000000 in Cerebus - that's some serious coin to get pulled if you do not comply

 

[Akita1]

I saw today where Cerberus capital is selling freedom group. Ill be interested to see where these companies end up in the future! Hopefully somewhere that can restore some craftsmanship and quality control.
-Gunslinger

Purchaser will likely be another large international firearms company (HK would be perfect for that quality restoration you noted), a family office or another PE group that doesn't use large amounts of public $. We can also expect Freedom to come at a bit of a discount these days: fire sale + adverse segment/industry perception will have a material impact on execution price.

 

[shotgunjoel]

It could also get pieced out to a number of buyers.

 

[helitack32f1]

Last I saw, Taurus was really interested in buying Freedom Group. I really would have little problem with them or any other fire arms manufacturer buying Freedom Group. Anything will be better than Cerberus.

 

[gunslinger15]

Somebody could stand to make some good money with Remington getting the military M4 contract.

 

[shotgunjoel]

Somebody could stand to make some good money with Remington getting the military M4 contract.

I heard that Colt appealed that contract, and then FN ended up getting it.
http://www.thefirearmblog.com/blog/2013/02/24/fn-manufacturing-wins-contract-to-supply-m4a1/

 

[wojownik]

Here's a related link from an OpEd from December. I had to read it twice to see if the author was trying to somehow be humorous.

http://www.cnn.com/2012/12/27/opinion/macintosh-gun-firm-takeover

I'm proud to say that I steered one non-profit away from having any dealings with the author's "non-profit merchant bank".

 

[blaisenguns]

In business school a few times we discussed venture capital firm. Does anyone know why they always have evil sounding names? Bane Capital? Cerberus Capital?

 

[capcyclone]

I'd really like to see the group get split into the different brands and have separate buyers of each. This would seem ideal to ensure control of so many manufacturers weren't under one umbrella.

 

[Dave Workman]

It is said by some folks that the Freedom Group's current situation has not been good for a couple of brands..Marlin and H&R 1871...so this sale might bring some resolution to whatever troubles the folks perceive..

I dunno. They're all decent brands, and I'd hate to see any of them suffer. We're talking about a large chunk of Americana...

 

[MAKster]

Cerberus has been trying to off load the gun companies for at least 2 years. They first planned to do an IPO but that fell apart and now they are trying to do a private sale.

 

[Cosmoline]

Does anyone know why they always have evil sounding names? Bane Capital? Cerberus Capital?

Because "Kneel You Dog!" and "Die Peasant Scum" didn't market test well.

Hopefully someone with some connection to firearms can pick up the pieces.

 

[Old Fuff]

According to Bloomberg.com one of the leading bidders is (or was) Taurus.

And yes, they do have the necessary bucks.

 

[Akita1]

In business school a few times we discussed venture capital firm. Does anyone know why they always have evil sounding names? Bane Capital? Cerberus Capital?

Former geeks trying to sound mean/cut throat.

 

[danweasel]

Former?

-Dan

 

[blaisenguns]

Former geeks trying to sound mean/cut throat.

I had a bit of a different hypothesis.

 

[helitack32f1]

It is said by some folks that the Freedom Group's current situation has not been good for a couple of brands..Marlin and H&R 1871...so this sale might bring some resolution to whatever troubles the folks perceive..

I dunno. They're all decent brands, and I'd hate to see any of them suffer. We're talking about a large chunk of Americana...

It's too late for at least one of those brands: Marlin. On other forums I have heard of how bad the quality of Marlin has become but finally got to hold a brand spankin' new one last week. Unfortunately the rumors were true. The quality was awful. Very sad.

 

[Ryanxia]

According to Bloomberg.com one of the leading bidders is (or was) Taurus.

And yes, they do have the necessary bucks.

I first laughed when someone said Taurus would be considering the purchase, couldn't imagine them having the cash to buy all of Freedom Group. If they do, better than the current situation I guess. (Don't think they'd modify quality control on the individual company level).

 

[JohnBT]

"Does anyone know why they always have evil sounding names? Bane Capital?"

It's Bain. Bain Capital was formed later on; the original group was Bain and Company. The Bain in it was Bill Bain.

Bain & Company was established in 1973 by a group of seven former partners and managers from the Boston Consulting Group headed by Bill Bain.

 

[Readyrod]

In business school a few times we discussed venture capital firm. Does anyone know why they always have evil sounding names? Bane Capital? Cerberus Capital?

Because they are not evil of course.

 

[Old Fuff]

I first laughed when someone said Taurus would be considering the purchase, couldn't imagine them having the cash to buy all of Freedom Group.

Taurus is an international company that’s based in Brazil. So far as overall sales in the United States are concerned they are 3rd behind Smith & Wesson and Ruger, in that order. They are also a major presence in those countries south of us.

So yes, if a deal can be made they have what’s required to go through with it.

And I don’t believe they would hesitate to move Freedom Group if it was advantageous for them to do so. If it comes about that whoever is the buyer decides to move the operation, the whole economy in the Illion, NY area would be devastated.