Yesterday the Wall Street Journal published an article discussing Cerberus Capital Management’s plan to seek an IPO for the Freedom Group Inc (FGI). FGI is a group of firearms manufacturers purchased by Cerberus over the last few years. Most recently, lead company Remington acquired suppressor manufacturer AAC. The companies that make up FGI include: Remington, Bushmaster, DPMS/Panther Arms, Marlin, H&R, NEF, LC Smith, Parker, Dakota Arms, EOTAC and INTC.
As we have heard of no recent preparations for such a move by the individual companies that make up FGI it will be interesting to see how this progresses. Since the only investment advice I ever seemed to listen to was “in a bad economy invest in booze, smokes, and guns” I am pretty excited about this. Naturally, if I do purchase any stock, I will be sure to disclose it to my readership. However, many industry analysts are concerned that as publicly traded companies the FGI firms will become more risk averse and fixate on short-term profits. This could mean the end to long-term projects such as the Adaptive Combat Rifle.
Tags: Cerberus, Freedom Group