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starroute

(12,977 posts)
7. Cerberus also owns Dyncorp -- and about half the gun manufacturers
Sat May 3, 2014, 08:45 PM
May 2014

That's the Dyncorp that's recently drawn scrutiny for having the bulk of US government contracts in Afghanistan. (And don't freak out because it's RT. The story has been all over.)
http://rt.com/usa/155392-dyncorp-afghan-reconstruction-contract/

And here's the gun stuff:

http://www.motherjones.com/politics/2013/12/freedom-group-cerberus-calstrs-bushmaster-newtown-sandy-hook

Dec. 10, 2013

Last December, four days after Adam Lanza murdered 20 first graders and six educators at an elementary school in Newtown, Connecticut, Cerberus Capital Management pledged to sell the Freedom Group, the company that manufactured the Bushmaster XM-15 assault rifle that Lanza used. The announcement helped tamp down a rising PR disaster for the Manhattan private equity firm, placating major investors such as the California State Teachers Retirement System (CalSTRS), which had said it was "examining" its $750 million stake in Cerberus after the massacre. The New York Times described the move as "a rare instance of a Wall Street firm bending to concerns about an investment's societal impact."

A year after the Newtown tragedy, however, Cerberus has not sold Freedom Group (also known as Remington Outdoor Company Inc.), the nation's largest firearms and ammunition conglomerate. After buyers failed to materialize early this year, Cerberus CEO Stephen Feinberg announced he and a small group of individuals would seek to buy the company, which also owns brands such as Remington, Marlin, and Dakota Arms. But in July, the Wall Street Journal reported that Feinberg was dropping his bid amid increasingly attractive offers from outside investors. "Cerberus initially planned to seek around $1 billion for the company," the Journal reported, citing an anonymous source, "but now wants more."

Business has boomed for Freedom Group in the year since the mass shooting at Sandy Hook Elementary. Between January and the end of September, the company raked in $94 million in profits on more than $1 billion in gun and ammo sales, compared with just $500,000 in net profits during the same period in 2012. For the full year ending December 31, Freedom Group estimates that its net sales will be up 34 percent to $1.25 billion, according to a financial disclosure (PDF) released Monday. Though Freedom Group doesn't release sales figures specifically for the Bushmaster XM-15 assault rifle, that weapon and similar models reportedly flew off retailers' shelves in the weeks after Sandy Hook, snatched up by firearms enthusiasts who feared the guns would soon be outlawed.

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They dropped it like a hot potatoe Blue Owl May 2014 #1
DUZY!! 2naSalit May 2014 #4
!! KansDem May 2014 #43
I suspect Danny's not actually the brains of the operation there. Gidney N Cloyd May 2014 #2
I suspect Danny's not the brains behind any operation. mountain grammy May 2014 #14
I despise private equity firms like Cerberus Cirque du So-What May 2014 #3
Mittens was 2naSalit May 2014 #5
No, it's nothing so neat. It's worse... JHB May 2014 #35
More ''change'' we can believe in? DeSwiss May 2014 #6
that's a joke I hope BlancheSplanchnik May 2014 #13
Blanche! DeSwiss May 2014 #17
ok then. :P BlancheSplanchnik May 2014 #18
If these private equity firms filled the niche'...... DeSwiss May 2014 #19
that's an excellent explanation. thanks!! BlancheSplanchnik May 2014 #20
Can you or anyone here explain how the equity company loads the rhett o rick May 2014 #24
one way is to use KT2000 May 2014 #30
I wonder if they can borrow with the retirement benefits as collateral. Thanks. nm rhett o rick May 2014 #37
good question because KT2000 May 2014 #41
Structuring buy-outs so the company is on he hook, paying big dividends to investors, buying... JHB May 2014 #38
Thanks for that. nm rhett o rick May 2014 #40
Since capitalism = money = debt....... DeSwiss May 2014 #50
Cerberus also owns Dyncorp -- and about half the gun manufacturers starroute May 2014 #7
Fuck them ALL BrotherIvan May 2014 #9
That's the Spirit! oldhippie May 2014 #29
Have you joined the bitter club too? BrotherIvan May 2014 #32
Mercenaries-R-Us DeSwiss May 2014 #51
"hellhound" They_Live May 2014 #8
How... 3catwoman3 May 2014 #46
This thievery needs to end. Ilsa May 2014 #10
Thank every god in the book that Mitt Romney did not become president. Initech May 2014 #42
greed capitalism at it's best for the profiteers heaven05 May 2014 #11
Mobsters. Not "like" mobsters; mobsters. WinkyDink May 2014 #12
Savvy businessman. We shouldn't begrudge their success. MannyGoldstein May 2014 #15
Thank you, TWM. We must control our jealousy. Enthusiast May 2014 #34
Criminal. SoapBox May 2014 #16
Oh they must be so proud of themselves hurting others to be filthy rich. n/t freshwest May 2014 #21
Private equity firms = vulture capitalists. Initech May 2014 #22
It's their sociopathic capitalistic mind sets. nm rhett o rick May 2014 #25
Private equity firms = vulture capitalists. The CCC May 2014 #36
Welcome to DU, The CCC! calimary May 2014 #48
Vultures at least perform a service catchnrelease May 2014 #52
I agree that "Vampire capitalism" better describes what they actually do. AdHocSolver May 2014 #54
Behind every great fortune is an even greater crime. nt MrScorpio May 2014 #23
my mechanic NJCher May 2014 #26
it's the republican way. barbtries May 2014 #27
Bill Clinton defended private equity groups recently. Enthusiast May 2014 #33
first lien holder, Cerberus, has swept the bank accounts Babel_17 May 2014 #28
Dan Quayle? Imagine that. Enthusiast May 2014 #31
This is no big surprise, is it? penndragon69 May 2014 #39
Excellent position of Dan Q randr May 2014 #44
I heard he mispelled it as loote. kairos12 May 2014 #45
If I misspell... 3catwoman3 May 2014 #47
This message was self-deleted by its author santamargarita May 2014 #49
good work Dan, you were worthless back in the day and worthless now...... BlueJac May 2014 #53
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