Mystery company buying up U.S. gun manufacturers

reply to post by GovtFlu


Not sure why you're quoting me, your response doesn't seem to pertain to my quote...?

What I was saying though, is that from the CONSUMERS point of view, it has never worked out for them when a single company or conglomerate buys up all the competition and folds them under one roof. Not only do prices go up, but quality goes down.

Call me a cynic, but Cerberus will without a doubt, keep the brandnames alive, but it will only be an illusion of choice as manufacturing will be consolidated. It'll be a near-monopoly and the only player in the AR game is Cerberus.



There's a financial side to this "conspiracy" too - Cerberus bought these companies then played up the impending election of Obama and "pending gun control" legislation. That led to big run on guns and ammo and Cerberus was in the driver seat. They were set to issue an IPO in 2009, but then the gun controls never came, and the market for firearms and ammo dropped off drastically. Cerberus has since recanted any IPO offer.

Cerberus' Adventures in the Gun Trade
Founder Steve Feinberg makes a big investment in firearms that has yet to pay off

For a while, the roll-up looked smart. The election of Barack Obama in November 2008 had firearms buffs worrying about possible gun prohibitions. Consumers stocked up on guns and ammo throughout 2009. Freedom saw sales rise 17 percent for the year and posted net income of $54.4 million, vs. a loss of $28.6 million the year before.

Then President Obama proceeded to do nothing on gun control. With no new restrictions on the horizon, "Freedom Group was thought to be a huge home run," says Steven M. Davidoff, a law professor and private equity expert at the University of Connecticut. In October 2009, Cerberus filed with the Securities & Exchange Commission to take Freedom public. Eight months later, gun sales are slowing and Feinberg hasn't pulled the trigger on the initial public offering. "The equity market isn't as welcoming [to IPOs] as it was just a few months ago," Shelly Lombard, an analyst at Gimme Credit, said in a June 2 note to clients about Freedom.

I can't quote the whole article here but it makes a lot of sense, Freedom/Cerberus was trying to corner the market on firearms (especially AR's) anticipating big sales and an IPO but the market didn't sustain their gamble.



BTW even the NRA squashes the rumor that Soros is in volved in this in any way:
NRA: Internet Rumors About Cerberus, Freedom Group Are Patently False

Friday, October 14, 2011

Recently, an old rumor regarding Cerberus--the private equity firm that owns Freedom group, a holding company that in turn owns a number of firearms manufacturers, including Remington, Marlin, Bushmaster, and DPMS--was in some way tied to George Soros.

This rumor is completely false and baseless.

NRA has had contact with officials from Cerberus and Freedom Group for some time. The owners and investors involved are strong supporters of the Second Amendment and are avid hunters and shooters.

In reality, at no time has George Soros ever been a part of the ownership group of Freedom Group or Cerberus, and as a privately traded corporation, there is no possibility that he will be in the future.

This unsubstantiated rumor has caused a great deal of unnecessary concern for gun owners. NRA-ILA urges our members to take great care before repeating baseless rumors found on the Internet.

The latest round for this rumor was Oct. 2011, which is - I assume - what prompted this topic on ATS.

Originally posted by Blackmarketeer
There's a financial side to this "conspiracy" too - Cerberus bought these companies then played up the impending election of Obama and "pending gun control" legislation. That led to big run on guns and ammo and Cerberus was in the driver seat. They were set to issue an IPO in 2009, but then the gun controls never came, and the market for firearms and ammo dropped off drastically. Cerberus has since recanted any IPO offer.

My guess it was a bitter IPO environment since

Gun and Ammo Sales Rocket In 2009

The NRA, a discriminatory, elitist of an institute, has guaranteed us that the individuals behind the acquisitions are "strong supporters of the Second Amendment.” This is how the supremacy elite prefers to work. Every move to prop up international governance is likely shrouded and veiled. It is always orchestrated actions behind seemingly rightful dealings.

Is it likely that Feinberg is doing the behest of a superior and more influential elite? We should be well conscious that one of the objectives of the PTB is to purge the US of guns. It is a key stumbling block to installing a OWG - or so it is said by orchestrated history observers.

Will there come a day in the not too distant future when the NRA declares that a gun purchase will require microchip implant?

Will we hear the NRA shout out that the Cerebrus/Freedom Group, America's Numero Uno gun shop, is firmly behind the idea! "Your industry is behind this necessity," we shall be told. "And so should you !"

Originally posted by Blackmarketeer
reply to post by GovtFlu

 

Not sure why you're quoting me, your response doesn't seem to pertain to my quote...?

What I was saying though, is that from the CONSUMERS point of view, it has never worked out for them when a single company or conglomerate buys up all the competition and folds them under one roof. Not only do prices go up, but quality goes down.

Call me a cynic, but Cerberus will without a doubt, keep the brandnames alive, but it will only be an illusion of choice as manufacturing will be consolidated. It'll be a near-monopoly and the only player in the AR game is Cerberus.

a Monopoly isn't allowed by law and will not be tolerated.
That said, this simply opens the door for smaller arms companies to step up and get a piece of the consumer pie.

This is Gunsmithing. It's not a specialized process, and anyone with some tools and steel can make guns.
Small comapnies will JUMP up at the slightest hint of an opening for them to graqb marketshares.
It aint rocket science.


One thing is still true about the USA. Anyone can start a business.
In fact, Id be looking for a smaller arms maufacturere who isnt being bought up to drop some investment money into.

Originally posted by BadNinja68
One thing is still true about the USA. Anyone can start a business.

Theoretically, but in reality, it is a select few and an ever dwindling percentage.

reply to post by BadNinja68


Of course small manufacturers and home shops can still sell their wares, but let's face it, they'll never be any competition to Freedom Group/Cerberus and it's stable of all the top manufacturers. Doubtful too that small manufacturers competing against a monopoly will ever see their product on the shelves of major retailers.

I can see a number of ways this group could use it's new clout to an unfair advantage, and with the deep pockets they have they can secure government orders and leave those independents out in the cold.

On a side note, remember when the military made the decision to stop selling it's spent cartridge casings? (around April or May of 2009). Used brass was a great way to make your own ammo, and when the military stopped those sales the gun industry went nuts. Many ammo makers like Georgia Arms rely on used military cartridges for raw material for their casings. Now imagine a monopoly power like Freedom Group with it's lobbying efforts prevents the military from ever selling off it's spent casings, and putting out of business these small ammo companies, forcing everyone to buy from Freedom Group? This is precisely what you should worry about from Freedom Group's activity.