I just read a report on USA Today and then confirmed it with a report on Reuters that Cerberus Captial announced today the purchase of Remington Arms for $118 Million and assumed a debt of $252 Million.
The scary name has intimidation value for Cerberus founder Stephen Feinberg, a reclusive former Princeton tennis captain with a regular-guy streak. A onetime Army Reserve paratrooper, he hunts deer when not hunting financial deals and drives an aging Ford pickup truck, friends and colleagues say.
They named their firm Cerberus, for the ferocious three-headed dog that guards the gates of Hades in Greek mythology. Feinberg liked the idea that one of the dog's heads was always on watch, just as his firm would guard its clients' investments around the clock. Sticking with the name Cerberus -- despite the pleas of bankers to change it to something less frightening -- didn't help matters. Neither did launching a fund called Styx, named after the river that separates the living from the dead in Hades. Says an adviser who has worked with Feinberg: "When people hear that Cerberus is looking at a deal, they groan."
Now this man is into his business!! NO bulls$$$t.....
Unfortunately these venture capital firms like Cerberus and Blackstone (both by the way are looking at Chrysler) are looking for a quick return on investment. This typically means splitting the company and selling off sections.... I.E the ammo division.
I have a feeling that this is not a good move for the Remington name.
FYI, the other player in the bid for Chrysler is Magna International, a Canadian multinational auto parts maker (one of the world's largest) who own or at one time owned famed firearms and manufacturing giant Steyr.
From what I can tell, Cerberus isn't known for splitting up companies. They had to of bought Remington for a reason, with the rising cost of lead, you wouldn't think the gun market is too great right now. They must know something we don't (shifts eyes), we can only hope...