Any news of Cerberus buying Springfield Armory?


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iamkris
October 1, 2007, 08:16 PM
I was listening to the Michael Bane podcast from 9/19 and he mentions another big acquisition is in the works for Cerberus. He wouldn't say who they were looking to buy except for


They have a very popular polymer framed pistol
They are a major seller of 1911's
They have a successful line of military-style long arms
Then he acts like he's going to talk about Rob Letham, stops himself and moves on.


So...anyone heard anything?

It would make some sense if they are trying to put together a S&W-like full service police and military group.


Remington for rifles, shotguns
Bushmaster for poodleshooters
Cobb for specialty arms
SA for pistols and battle rifles
All fairly healthy from a new-products and marketing standpoint

There are worse combinations

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esheato
October 1, 2007, 08:36 PM
Interesting....I'm watching this thread...

jerkface11
October 1, 2007, 08:50 PM
They also own Jeep maybe they'll put all of it together and make something really cool.

jefnvk
October 1, 2007, 09:04 PM
Hmmmm.....

I see a market for throwback Jeeps with M1's in the rifle racks :)

Fburgtx
October 1, 2007, 09:27 PM
Maybe they're buying S&W or Sig?????

Outlaws
October 1, 2007, 10:08 PM
They just better not screw up the customer service SA offers.

Outlaws
October 1, 2007, 10:12 PM
I was just using my negative thought process to its fullest and realized that a billionaire anti could buy up lots of gun companies and simply close the doors on them all.

:eek:

I hear this guy likes guns though, but still...spooky. :cool:

Kestrel
October 1, 2007, 11:20 PM
Cerberus owns Jeep? I thought Chrysler owned Jeep. And was it Cerberus that recently purchased Chrysler from Daimler-Benz?

vit
October 1, 2007, 11:33 PM
Kestrel,
You are correct.

iamkris
October 1, 2007, 11:41 PM
The head of Cerberus sounds like he's on our side

Stephen A. Feinberg (March 29, 1960 - ) is an American businessman active in the field of private equity. He is the founder and head of Cerberus Capital Management.

Feinberg was born in Spring Valley, New York, a relatively poor suburb of New York City. His father was a steel salesman. He attended Princeton University in New Jersey, graduating with a degree in politics in 1982. While there, he captained the tennis team and joined the Reserve Officer Training Corps, but did not have a lot of friends on account of his intense privacy.

After graduating from university, Feinberg worked as a trader at Drexel Burnham and Gruntal & Co.

In 1992 Feinberg teamed up with William L. Richter to found Cerberus Capital Management with just $10 million under management. Cerberus has prospered, and Feinberg has been at the helm of the firm since its founding.

Feinberg is a very private person, and does not ever grant interviews or photographs to the media. Despite his considerable personal wealth (Feinberg reportedly made $50 million in 2004) he does not indulge in luxury.[1] He lives on Manhattan's Upper East Side with his wife Gisela and their three daughters.

His hobbies include game hunting, chess, skiing, and riding his Harley-Davidson motorcycle. Steve and Gisela Feinberg are prolific donors to the Republican Party and related organizations.


It's quite the diverse private equity firm

Pharmaceuticals - In December 2004, the company announced the acquisition of Bayer's plasma products business and renamed it Talecris Biotherapeutics.

Paper products - The company acquired MeadWestvaco's paper business for $2.3B in 2005 and renamed it NewPage Corporation. Cerberus also purchased, from Georgia Pacific Corporation, its Distribution Division/Building Products and all of its associated real estate. It renamed this new company BlueLinx, based in Atlanta.

Government Services (Military, Energy, and Food & Drug) - owns IAP Worldwide Services, which bought Johnson Controls' World Services division in February 2005, and Netco Government Services.

Real Estate - Through investment affiliate Blackacre Capital, the company has been making direct equity, mezzanine, first mortgage, distressed and special situation investments in all asset types. It also controls Miami Beach.-based LNR Property, a large real estate development and investment firm through subsidiary Riley Property. Cerberus also controls Kyo-ya, a Japan based group of entities that owns several Starwood managed assets in California, Hawaii and Florida.

Retail - Cerberus purchased 655 of the 2,500 Albertson's, Inc., grocery stores, forming Albertsons LLC of Boise, Idaho, in June of 2006. They also own Mervyn's department stores, which was acquired from Target Corp. In June 2007, Cerberus acquired Torex Retail Plc., a retail solutions provider in troubled waters, for approximately 400 million US dollars.[2]

Transportation - Acquired bankrupt ANC Rental, owner of the National and Alamo car rental chains, for $230 million in October 2003 and purchased DaimlerChrysler's 45% share of debis AerFinance, an aircraft leasing business, in May 2005. Complete acquisition of debis AirFinance (later renamed AerCap) was concluded in July 2005. Also acquired North American Bus Industries, Optima Bus Corporation, and Blue Bird Corp. in the bus manufacturing sector. Also owns ACE Aviation Holdings, parent of Air Canada.

Construction - Announced on July 23, 2007, Cerberus agreed to acquire United Rentals, Inc., North America's largest equipment rental service. The transaction was valued at $6.6 billion, including the assumption of approximately $2.6 billion in debt obligations.

Automotive - Peguform, GDX, and Chrysler.

Financial Services - General Motors sold a 51% stake in its GMAC finance unit to an investor group led by Cerberus Capital Management. GM expects to receive $14 billion over the next three years from the sale of General Motors Acceptance Corp. In December 2006, Cerberus acquired the Austrian bank BAWAG P.S.K. for a reported EUR3.2 billion. In April 2007, Cerberus announced it intention to acquire Option One Mortgage Corp from H&R Block for about $1 billion. That acquisition is still pending. In August of 2007, Cerberus announced that it was closing one of their mortgage companies, Aegis Mortgage.

Firearms - Acquired Bushmaster Firearms, Inc., from Windham, Maine native Dick Dyke for an undisclosed sum in April 2006. Also purchased Remington Arms in April of 2007.

Entertainment - To acquire 6 television stations owned and operated by CBS Corporation, pending FCC approval. The station group is called Four Points Media Group. As of September 1, 2007, the 6 stations are no longer listed on the CBS Television Station website. [3] By the end of September 2007, all of the stations have launched new websites. Although CBS still holds the stations' licenses for the time being, Cerberus/Four Points took over control of the stations through time brokerage agreements.

http://en.wikipedia.org/wiki/Cerberus_Capital_Management

jefnvk
October 2, 2007, 11:07 AM
So he owns Bushy and Remington?

jerkface11
October 2, 2007, 11:40 AM
Cerberus owns Jeep? I thought Chrysler owned Jeep. And was it Cerberus that recently purchased Chrysler from Daimler-Benz?

Well if Cerberus owns Chrysler and Chrysler owns Jeep then Cerberus must own Jeep.

Zundfolge
October 2, 2007, 11:59 AM
He wouldn't say who they were looking to buy except for
They have a very popular polymer framed pistol
They are a major seller of 1911's
They have a successful line of military-style long arms
Then he acts like he's going to talk about Rob Letham, stops himself and moves on.

While I agree that sounds a lot like Springfield ... it could also be S&W.

They make a popular line of poly pistols (the M&P)
They make a 1911
They make a military/police style rifle now (the M&P AR15)
And did he actually use the words "Rob" and/or "Letham"? Or did he just mention a "top competitive shooter" ... S&W has Jerry Miculek.

iamkris
October 2, 2007, 12:54 PM
OK, I was mistaken...it is on his 9/12 (not 9/19) podcast starting around 1':50" through around 3':50" on the recording. The specific, verbatim phrases Michael uses are:

"Really best selling polymer pistol..."
"One of the largest sellers of, ummm, oh say, 1911's..."
"Very successful line of military rifles..."
"Close your eyes, visualize Rob Letham..."

Sounds a bit more like SA than S&W to me but I'll admit they are close. That said, if it is SA, that makes sense that Cerberus is trying to create a counterweight to S&W who has essentially already created what Cerberus appears to be trying to do.

Technosavant
October 2, 2007, 01:16 PM
Wow, that would be neat.

And the fact that the Cerberus folks are pro-gun just gives me all kinds of warm fuzzies about the 2008 Jeep Patriot I bought this weekend.

strat81
October 2, 2007, 01:39 PM
"Really best selling polymer pistol..."
Neither SA nor S&W have ever had the best-selling polymer pistol. The new M&P has done well, as has the XD, but neither hold a candle to Glock.
Fact check on aisle 3, please...

damien
October 2, 2007, 02:40 PM
I was just using my negative thought process to its fullest and realized that a billionaire anti could buy up lots of gun companies and simply close the doors on them all.

No matter how much money you have, you can't simply buy up all the arms companies and close them.

Demand creates supply. There would be new arms companies in about four weeks creating the supply to meet the demand. The only thing someone with money could do is buy up all the patents on the newer designs (20 year patent term), but most of you guys prefer 1911's anyway. :neener:

SaMx
October 2, 2007, 02:47 PM
Cerberus should get a new marketing department, they have an almost cartoonishly evil name.

iamkris
October 2, 2007, 03:16 PM
http://www.magewarfare.com/downloads/wallpapers/Cerberus.jpg

SHOOT1SAM
October 2, 2007, 04:09 PM
Nothing evil in the name Cerberus.

For those not up to speed on their Greek mythology, Cerberus was the three-headed dog that guarded the entrance to Hades, the underworld where people descended to when they died, mistakenly thought of as Hell. He was one of the 12 Labors of Heracles (more commonly referred to by his Roman/Latin name, Hercules).

I have always wanted to name a dog Cerberus, but due to Ayoob's influence, I don't. I can just see if I had a dog that bit someone for any reason, some lawyer claiming "He named the viscious dog after the beast that guards the gate to Hell!!"

Sam

SaMx
October 2, 2007, 04:48 PM
well, the name cerberus is ancient greek for "demon of the pit."
it's certainly not a benevolent image
http://www.kiberpipa.org/~cerberus/cerberus.jpg

Wes Janson
October 2, 2007, 08:57 PM
As I recall, Cerberus was the name of an evil corporation in one of the Dirk Pitt books.

*shrug*

Baron357
October 2, 2007, 09:42 PM
I can tell you for a fact it is NOT S&W... I for one would like to SA stay independent but money talks who knows.

Aguila Blanca
October 2, 2007, 10:32 PM
I checked with my contact at Springfield, and he said this rumor is, ah ... well, he didn't use the word "true." Art's grammaw would likely be offended at what he said it was, in fact.

Joshua C
October 2, 2007, 11:17 PM
^did it involve the end product of a male bovines feeding?

MBane666
October 23, 2007, 11:56 AM
Heard the deal didn't float, and Cerberus is still shopping...

mb

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