National Gun Forum banner
1 - 11 of 11 Posts

·
Harley Dude
Joined
·
14,651 Posts
Discussion Starter · #1 ·
Saw that in American Rifleman.

This is the fifth major arms company acquisition in under two years by Cerberus Capital Management. Cerberus is the same private equity company that purchased a majority staek of the Chrysler group in May 2007.

I wonder what the heck they are up to???
 

·
Banned
Joined
·
1,456 Posts
Supposedly the chief cook and bottle washer of CCM is a big gun guy. I think the purchase of Bushmaster, Remington, and Marlin by them is a good thing. Only Remington was a dog with fleas financially. Bushmaster and Marlin are both making money. I think they will more or less "incorporate" all three. Look for a lot of "brand switching". You're already seeing it with Remington coming out with a "new" AR-15. It's nothing more than a Bushmaster with a camo paint job, and Remington Arms stamped on the side instead of a snake. It will make the AR-15 rifle even more "mainstream". Bill T.
 

·
Pro Gun Advocate
Joined
·
10,940 Posts
I'm of two minds on aggregating firearms manufacturers under one corporate entity.

The downside is that a single successful lawsuit could bring down a very large manufacturer of a lot of brands.

The upside is that a very large manufacturer is likely to have enough resources (and incentive) to fight an expensive legal battle.
 
G

·
Anyone see the danger in one entity buying up major firearm manufacturers? If the trend continues and they decide to "Close Up Shop" for whatever reason it could make buying a firearm a difficult and expensive proposition. I don't trust that Cerberus outfit in any way.
 

·
Banned
Joined
·
1,456 Posts
Why would they pay millions to purchase companies, then tank them? It's a fact Remington has been in hot water financially for years. Bushmaster and Marlin are making money. In this regard they can use both to help one. They are already doing it with Remington and Bushmaster. Imagine how expensive it would have been for Remington to build an AR-15 rifle and market it from the ground up with their name on it. All they have to do now is put it in a green box instead of a brown one. Remember, all of the gun companies in this country combined don't have the total revenue of Toy's-R-Us. It's not that lucrative of a business. Bill T.
 

·
Harley Dude
Joined
·
14,651 Posts
Discussion Starter · #6 ·
BuzzKilr said:
Anyone see the danger in one entity buying up major firearm manufacturers? If the trend continues and they decide to "Close Up Shop" for whatever reason it could make buying a firearm a difficult and expensive proposition. I don't trust that Cerberus outfit in any way.

This is what bothered me too! I think this company is not a company in the business of operating anything long term. They are more of a work out firm. They buy deals to turn a profit and may see a silver lining on the horizon as they cut costs of operation, turn a profit and sell them off for big money.

They go into a business, clean house, cut benefits, trim labor, regroup and build a new business. That is what needed to happen to Winchester, but I think the Union lock on the business made that impossible. So I wonder how the Winchester Union workers who would not negotiate are making out now that the company and all their benefits are gone.

I am glad to hear that the owner is a big gun guy that may be a positive for the gun business. We will see long term what happens.
 

·
Premium Member
Joined
·
15,424 Posts
The good news is that at least Cerberus Capital Management is an American company. One of its big honchos is Dan Quayle. They specialize in taking failing businesses, bringing them around, then selling them. Much like what Mitt Romney did before he did the Olympics and Governor of Mass. The thinking was that Bushmaster and Marlin, companies which have weathered rough times and come out ahead, would help the others. NEF is in the mix, somewhere, as well.
 

·
Banned
Joined
·
1,456 Posts
The buzz is they may be purchasing H&K as well. An announcment is supposedly forthcoming. Bill T.
 
G

·
I have heard from a good source that they bought up chrysler for the tank division. Has anybody seen anything public about this.
 

·
Pro Gun Advocate
Joined
·
10,940 Posts
gjshaw said:
I have heard from a good source that they bought up chrysler for the tank division. Has anybody seen anything public about this.
Everything I find refers to the sale of the division to General Dynamics back in 1983. There's a 2005 article on the history of the Abrams tank, GD still owned the division then.
 
1 - 11 of 11 Posts
Top