“After a nearly yearlong effort to sell its gun business, Cerberus Capital Management LP is close to bringing on a minority investor and lender to the weapons maker to let some of its investors sell out, a person familiar with the matter said.” As wsj.com points out, Steven A. Feinberg’s minions have been looking to punt, indeed promising to punt the Freedom Group (FG) for almost a year, after it was revealed that Newtown spree killer Adam Lanza used a Bushmaster AR-15 for his murderous spree. Spurred on by The California State Teachers Retirement System’s decision to pull some $15m out of the Freedom Group in protest. The sales process has been, shall we say, fraught. As the wsj reports . . .
Cerberus hasn’t reached an agreement with a buyer. The sales process has been complicated by several factors, including subsequent high-profile shootings and financing issues for some possible bidders, the person familiar with the matter said. Some offers were lower than what Cerberus thought was fair, the person said. In addition, some private-equity firms looked at the company but dropped out in early September, the person said.
Cerberus had originally sought around $1 billion for the business, a person familiar with the matter said. The new planned deal, including about $200 million in a credit facility, values the business at around $1.2 billion.
I’m not buying it (so to speak).
Despite a rising tide lifting all gun manufacturers (FG’s quarterly revenues rose 46 percent from last year to $347.1 million, earnings doubled to $31.2 million) the agglomeration of competitive and non-synergistic firearms-related enterprises known as the Freedom Group has managed to screw the pooch. Marlin is dead in the water. Bushmaster’s got quality control problems. AAC has lost its edge. And so on.
In short, the Freedom Group has run down the value of its brands, which have sweet FA to do with each other. They’re worth more sold separately than as a group. The real question is this: who’s the mystery minority investor? There was talk of current FG CEO George Kollitides [above] investing his personal fortune in the Group. We shall see . . .
“the agglomeration of competitive and non-synergistic firearms-related enterprises”
I hated you for this phrase until I read it again and realized it wasn’t just corporate doublespeak, it actually makes sense. Sorry for overreacting; I have a knee-jerk reaction to “synergy.”
On topic, I still don’t understand what this means. Would an individual investor with really deep pockets come in and buy up the stock of those who wanted out? Or buy up pieces of the compan(ies), but not entire brands?
“the pro-gun forces, even though they may be a minority in the country overall”
It is frustrating for the gatekeepers of ms.-information who lead the diverse groups and organizations (from the Left and the Right) seeking to control public opinion that the Internet provides the average citizen with access to more direct and comprehensive information making average citizens less dependent on CNN, NYT, NPR, etc.
Another cluster f* by Cerberus. Look at what they did to Chrysler. All IMHO, ‘natch.
If one likes the look of this new XSP, and doesn’t mind paying the extra $200, would you guys recommend it for a newbie’s first gun if said newbie is 63 years old? Thanks. My doggie is very old and I need to find a new protector quite soon as he won’t be around much longer.
For the families willing to follow the doctor’s orders. I’m opening a home for foundling pistols. Rest assured they will be treated with great kindness.
What percentage of the population die in socialist nations from guns in the hands of a socialist government? I know that there is a much smaller number of people being killed by guns in the public sector simply because they don’t have them… but what, exactly is the percentage of citizens in Russia or China, or Mexico, killed by Corrupt Governments and Organized Crime?
If you look at Mexico alone….. you might want to sit down before you read it.
A well regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed.
You know what’s worse than the People fighting their own government to repel infringement… living under tyranny! Tyranny is defined as that which is legal for the government but illegal for the citizenry. (Thomas Jefferson)
God forbid we should ever be twenty years without such a rebellion. The people cannot be all, and always, well informed. The part which is wrong will be discontented, in proportion to the importance of the facts they misconceive. If they remain quiet under such misconceptions, it is lethargy, the forerunner of death to the public liberty…. And what country can preserve its liberties, if its rulers are not warned from time to time, that this people preserve the spirit of resistance? Let them take arms. The remedy is to set them right as to the facts, pardon and pacify them. What signify a few lives lost in a century or two? The tree of liberty must be refreshed from time to time, with the blood of patriots and tyrants. It is its natural manure. – Thomas Jefferson
Took my kids to the range for Black Friday. Other Black families should too. Helps keep the neighborhood safe.
These Aholes at MAIG ans MDA are so stupid they are just begging for a Nairobi style mall attack here in the US. They do not get it ! ” Criminals Don’t do Backround Checks” nor do they “turn in their guns” for a Walmart coupon! They create havoc and murder on innocent victims ,like themselves,the unarmed and uninformed masses .
The Murderers ALWAYS have the element of surprise on every victim your only two recourses are ; be a victim or turn the tables on the assailant ,THAT’S IT
What’s it gonna be? For MAIG/MDA it’s VICTIM!
1500 bucks for a 9mm carbine? No thanks. Sub 2k for $500 or even the CX4 for under $1000. I can’t see a reason for a 9mm carbine to break 1k unless it is firing a few hundred rounds per minute.
Smells litterly like a number someone had to dig really deep in their ass to pull out because its totally made up.
That piece of fiction wouldnt even stand up to snopes inspection.
Lets see the proof.
“This was organised according to the rules of the Civilian Marksmanship Programme (CMP), an American programme originally developed to train civilians in the use of weapons so they could be called upon in times of war.”
I guess in time of war, they’ll hand everyone a single shot bolt action rifle.
What is wrong with Jews? Was not WWII enough of a knock on the head for them to wakeup? Never again? Yeah right, can’t stop it when the majority of them are selling each other out.