Wednesday, October 21, 2009

Cerberus May Spin Off the Freedom Group of Gun Companies

Just as I predicted; according to the WSJ, Cerberus Capital Management is looking to dump its Freedom Group portfolio of gun and ammunition makers.

"Cerberus will try to take Freedom Group public amid a flurry of private-equity-backed companies hoping to exploit an improved IPO market."

The article says that "Cerberus's thesis was to consolidate a fragmented industry it saw as undermanaged."

This is interesting. I would like to own these at the right price.


eh said...

They probably need the money after the Chrysler debacle.

PD said...

i agree about the ammo makers- at the right price.

CP said...

Best case scenario is probably that the IPO tanks and we can load up.

I saw some articles with a bit more specifics. But journalists never find out the important details like valuation multiples, enterprise value, etc.