Cerberus Capital (of GMAC & Chrysler bailout fame) is buying up gun and ammo makers

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devil21

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http://www.reuters.com/article/privateEquity/idUSN1939749120091019

NEW YORK, Oct 19 (Reuters) - Private equity firm Cerberus Capital Management [CBS.UL] is in advanced preparations to take rifle and ammunition maker Freedom Group Inc public, the Wall Street Journal reported on Monday, citing people familiar with the matter.
Cerberus has rolled at least seven U.S. gun-and-ammunition makers into Freedom over the last three years, creating a company that is on pace for nearly $1 billion in sales this year, the Journal reported, citing a person familiar with the company's results.

The rifle and ammunition companies Cerberus has acquired for Freedom include Remington Arms Co, Bushmaster Firearms, Cobb Manufacturing, Marlin Firearms, Dakota Arms LLC and DPMS Panther Arms, according to the report.

A Cerberus spokesman declined to comment. (Reporting by Michael Erman)
Click to expand...

This is not good at all. Cerberus, the same private equity firm benefitting from huge amounts of federal bailout cash from the Chrysler and GMAC implosions is using the money to buy gun and ammo makers. What's to prevent Cerberus from shutting them down at the whim of the gov't? This is disturbing for what it could mean for the future of large gun makers, particularly the AR15 platform for citizen ownership.
 
Cerberus lost their entire equity investment in Chrysler. I think they received next-to-nothing on any subordinated-debt they owned.

Freedom Group is in advanced stages of an IPO. Several people blame the precipitous decline in SWHC (Smith & Wesson) to this, as their stock price had been highly inflated because there are so few ways to play the rifle market.

Freedom Group has several long-gun manufacturers, working on pistol manufacturers, and buying ammunition manufacturers. If there is a stock I'd love to get an allocation of shares in when the IPO hits, it is Freedom Group.
 
bunklocoempire said:
http://www.vicepresidentdanquayle.com/boardMemberships.html
"In addition to his role as Chariman of Cerberus Global Investments, LLC, Former Vice President Dan Quayle also serves on the board of Aozora Bank, K-2 Inc."

I'm sure he has our back. :rolleyes::mad:

Bunkloco
Click to expand...

FYI that site is outdated. Former Treasury Secretary John Snowe is Chairman of Cerberus right now :)

However, the biggest known equity holder in the Cerberus partnership is Steve Feinberg (the founder). Steve just as an FYI is a huge hunter and privately a big advocate of gun-rights.
 
Cowlesy said:
FYI that site is outdated. Former Treasury Secretary John Snowe is Chairman of Cerberus right now :)

However, the biggest known equity holder in the Cerberus partnership is Steve Feinberg (the founder). Steve just as an FYI is a huge hunter and privately a big advocate of gun-rights.
Click to expand...

Well that info makes me feel much better :rolleyes:

We have a gov't stooge and a guy notorious for destroying companies as the guys in charge of a good chunk of America's civilian weapons industry. Let me see if I can use past performance as a future indicator.

1. Cerberus sees the large spike in gun and ammo sales, thinks "Quick Profit"
2. Takes money made (both private and public bailouts) through destroying Chrysler and GMAC, starts buying gun makers
3. Amasses them under one corporate entity, Freedom Group and offers IPO
4. Decent results on IPO, lots of capital raised, rides out gun sales spike making more money but likely offshoring whatever they can
5. Cerberus then runs the company into the ground either at the request of the gov't or runs them into the ground like they do every other company they buy.
6. No guns and ammo available after company is dissolved. That'll be one company the feds won't bailout. Or it'll be turned into LE and Military supplier only getting sweet gov't contracts. Same end result for the citizens either way...less weapons (particularly AR platform) and ammo.

I don't see how this can possibly be a good thing for the 2nd amendment and citizen gun owners. Sound about right?
 
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Too bad they can't keep them from purchasing stock in the companies.
You know, like how they kept Rush Limbaugh from buying a football team based on his personal views!
 
Cowlesy said:
FYI that site is outdated. Former Treasury Secretary John Snowe is Chairman of Cerberus right now :)

However, the biggest known equity holder in the Cerberus partnership is Steve Feinberg (the founder). Steve just as an FYI is a huge hunter and privately a big advocate of gun-rights.
Click to expand...

Thanks for the heads up.

Bunkloco
 
If anything, this should tell us that unlike many industries, firearms are taking off! Obviously these guys see a good return on investment by owning gun and ammo makers. All this says is that people will still be loading up guns and ammo in light of the great recession. Its just telling us what we allready know.
 
Either way, I am finally biting the bullet sorta speak and getting my reloading equipment and setting it up. Just to be on the safe side. By Monday I will be able to reload '30-06 .223REM 5.56NATO .40S&W and 12 gauge
 
Smith & Wesson (SWHC) stock is down 7% today after reporting net income was half of what it was last year on weak gun sales.

Few thoughts:

1.) There has been a lot of M&A activity in the past few weeks. Could this depressing of the stock price lead to some people making an offer for SWHC?

2.) Could we see another surge in purchases given all the bad news coming out?

3.) Could we see further depreciation in SWHC's stock price because if Republicans take control of the House of Reps, there's practically no chance of any Gun Control measures being passed. So the "Obama is coming for our guns!" argument loses steam (and therefore slows panic buys).

http://finance.yahoo.com/q?s=swhc
 
Cowlesy said:
Smith & Wesson (SWHC) stock is down 7% today after reporting net income was half of what it was last year on weak gun sales.

Few thoughts:

1.) There has been a lot of M&A activity in the past few weeks. Could this depressing of the stock price lead to some people making an offer for SWHC?

2.) Could we see another surge in purchases given all the bad news coming out?

3.) Could we see further depreciation in SWHC's stock price because if Republicans take control of the House of Reps, there's practically no chance of any Gun Control measures being passed. So the "Obama is coming for our guns!" argument loses steam (and therefore slows panic buys).

http://finance.yahoo.com/q?s=swhchttp://finance.yahoo.com/q?s=swhc
Click to expand...

Buying opportunity for more weapons before they are needed. With the Army going hog wild for the M4, there are a lot of A2 parts around, and I can build these with all Colt or FN upper parts all day for $750:

FNA2.jpg


Barrels at less than $200
Uppers for less than $100
Bolt carrier groups at less than $150
Stripped Lower at $100
Lower parts kit less than $75
Stock assembly less than $75
 
devil21 said:
http://www.reuters.com/article/privateEquity/idUSN1939749120091019



This is not good at all. Cerberus, the same private equity firm benefitting from huge amounts of federal bailout cash from the Chrysler and GMAC implosions is using the money to buy gun and ammo makers. What's to prevent Cerberus from shutting them down at the whim of the gov't? This is disturbing for what it could mean for the future of large gun makers, particularly the AR15 platform for citizen ownership.
Click to expand...



good thing i bought one yesterday :) 699$ at Gander Mountain its a M&P15 optics ready not the best but it was a good price imho and i can start my learning process on it
 
Cerberus has picked up some more firearms manufacturers recently.

Here's their list according to their website:

REMINGTON
BUSHMASTER
REMINGTON MILITARY
REMINGTON LE
MARLIN FIREARMS
H&R 1871
DAKOTA ARMS
DPMS / Panther Arms
PARKER GUNMAKERS
BARNES BULLETS
ADVANCED ARMAMENT EOTAC
REMINGTON PMPD
MOUNTAIN KHAKIS
 
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