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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums"Meet the private equity firm that dominates the US gun industry"
Meet the private equity firm that dominates the US gun industryBy Zachary M. Seward at Quartz
http://qz.com/#37276/meet-the-private-equity-firm-that-dominates-the-us-gun-industry/
"SNIP...........................................
Trace the semiautomatic assault rifle used in Fridays slaughter in Newtown, Connecticut, to its originback to the store where it was bought, the factory where it was produced, and the companies that profited from its saleand youll end up in the Midtown Manhattan headquarters of a private equity firm named after a mythical three-headed dog that guards the entrance to the underworld.
And its there, at the office of Cerberus Capital Management, where the future of firearms in the United States is likely to turn.
Cerberus quietly dominates the American gun industry, selling more firearms and ammunition in the US than anyone else. In 2008, by its own account, Cerberuss Freedom Group sold half of the nations semiautomatic rifles along with 37% of traditional rifles, 31% of shotguns, and 33% of ammunition. All told, Freedom Group says it sold 1.2 million long guns and 2.6 billion bullets in the 12 months between April 2009 and March 2010, the most recent year for which data is available, generating $846 million in revenue.
How Cerberus, which is perhaps best known for being little-known, came to be the main player in the worlds biggest gun market speaks to dicey business of manufacturing firearms and the darker aspects of private equity. Cerberus didnt return messages seeking comment.
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Toronto
(183 posts)cloaks the true nature of their acts by attaching the word "freedom" to it?
jody
(26,624 posts)duwizrd
(6 posts)Keeping in mind that correlation does not equal causation, here's a quick look at Cerebrus from wikipedia with mass killing annotations from http://www.motherjones.com/politics/2012/07/mass-shootings-map?page=2
Cerebrus Capital Management: Acquired Bushmaster Firearms, Inc., from Windham, Maine native Dick Dyke for an undisclosed sum in April 2006,
In 2006 mass killings accounted for 26 dead and wounded in the States of CA, WA, PA
Cerebrus Capital Management: Purchased Remington Arms in April 2007. Under Cerberus direction, Bushmaster Firearms acquired Cobb Manufacturing, a well-respected manufacturer of large-caliber tactical rifles in August 2007. Cerberus also acquired DPMS Panther Arms December 14, 2007.
In 2007 mass killings accounted for 86 dead and wounded in the States of UT, VA, WI, NB
Cerebrus Capital Management: Remington Arms acquired Marlin Firearms in January 2008. In October 2009, Remington Military products acquired silencer manufacturer Advanced Armament Corporation. These companies were combined into the Freedom Group.
In 2008 mass killings accounted for 42 dead and wounded in the States of MI, IL, KY
Freedom Group Vision Statement
Freedom Group is the premier U.S. provider of firearms, ammunition and related products to a diverse set of global customers and markets. We are dedicated to design excellence, product innovation, speed to market, outstanding customer service and superior quality. We always treat our customers, employees, business partners, environment, community and nation with the highest levels of integrity.
In 2009 - 2012 mass killings accounted for 256 dead and wounded in the States of NC, NY, TX,WA, CN, AZ,NV, CA, CO, WI
Achilles Heel ?:
Sales made to Wal-Mart accounted for approximately 13% of our total sales for both of the nine
months ended September 30, 2012 and 2011, and 13% and 14% of our accounts receivable balance
as of September 30, 2012 and December 31, 2011, respectively. Wal-Mart, together with another
customer, accounted for approximately 17% and 21% of our accounts receivable balance as of
September 30, 2012 and December 31, 2011, respectively. Our sales to Wal-Mart are generally not
governed by a written long-term contract between the parties. In the event that Wal-Mart were to
significantly reduce or terminate its purchases of firearms, ammunition and/or other products from
us, our financial condition or results of operations and cash flows could be adversely affected.
MNBrewer
(8,462 posts)applegrove
(118,781 posts)see the business meeting where they came up with the name. "guarding hell? PERFECT!".
Bombero1956
(3,539 posts)Do you know who owns more than a 6% stake in the maker of .223 Bushmaster rifles, like the one used last Friday to murder 20 first graders and seven adults in Newtown, Connecticut? California public schoolteachers. The company in question is Freedom Group, a privately-held firearms conglomerate formed by private equity and hedge fund group Cerberus Capital Management. Cerberus created the platform in April 2006 via the acquisition of Bushmaster, after which it added another 10 makers of firearms, ammunition and accessories including Remington, Marlin Arms and Barnes Bullets. The California State Teachers' Retirement System (CalSTRS) committed to invest a whopping $500 million into a $7.5 billion Cerberus fund that has helped bankroll Freedom Group. That means that it effectively could own a 6.67% stake in the gun maker, which filed to go public in late 2009 before pulling the offering in early 2011.
http://finance.fortune.cnn.com/2012/12/17/the-money-behind-the-massacre/?iid=HP_LN