Freedom Group for sale?

[Bearcatrp]

http://www.businessweek.com/articles/20 ... gn_id=yhoo
Not sure if this is good or bad news.

[ex-LT]

A few things I gleaned from the article....

The March 11 proposal by a little-known Palm Beach, Fla., company called Global Digital Solutions struck me as dubious, given the would-be buyer’s tiny size and lack of a track record in the insular small-arms business.

An affable guy with a thick Boston accent, Sullivan has some insightful things to say about the strangeness of established small arms manufacturers having so far resisted the integration of digital features into their products.

“We’re working on raising the capital, and we have serious intentions,” Sullivan says. “We want to make a transformative technological contribution to an industry that’s stuck in analog and inevitably must participate in the digital world transition that’s going on."

To me, Sullivan's quote is a HUGE red flag.

[LumberZach]

Didn't the Freedom group put the companies up for sale after Sandy Hook? It sounded familiar to me. Either way, there has not been much of any good to come out of the Freedom Group.

[Rip Van Winkle]

Cerberus has been half heartedly trying to sell Freedom Group since the Sandy Hook shooting.

As to the linked article, it smells of a small time business owner fishing for free publicity.

[Ironbear]

“A lot of people who don’t own guns would like to have one if it had digital features that gave them choices,” Sullivan says.

.... Huh????

OTOH... every small arm I've ever encountered, has had one or two features for my digits, that gave me several choices....

[jdege]

“We’re working on raising the capital, and we have serious intentions,” Sullivan says. “We want to make a transformative technological contribution to an industry that’s stuck in analog and inevitably must participate in the digital world transition that’s going on."

I'm fine with hanging electronics off my toys, but I will never have a defensive firearm that depends on a battery.

[Lumpy]

We want to make a transformative technological contribution to an industry that’s stuck in analog

A bullet hitting its target is as analog as it gets.

[Thunder71]

Maybe they want to make these a reality?

[igofast]

According to Remington, it's a publicity stunt:

http://www.theoutdoorwire.com/features/228603

per internal memo by Remington Outdoor Group's CEO, George Kollitides: "Yesterday, a small, unknown investment entity publicly announced its desire to acquire the Remington Outdoor Company. If this wasn't disruptive to our employees and customers, we would not acknowledge the news and recognize it for what it is: a publicity stunt from an agenda-driven group with no credible financing options."

[45Badger]

Cerberus has been half heartedly trying to sell Freedom Group since the Sandy Hook shooting.

As to the linked article, it smells of a small time business owner fishing for free publicity.

Cerberus recapitalized Freedom Group and bought out their "uncomfortable" investors. In PE, everything is for sale, all the time, for the right profit.

[AFTERMATH]

Do I smell an MNGT group buy in the works?

[mmcnx2]

Cerberus has been half heartedly trying to sell Freedom Group since the Sandy Hook shooting.

As to the linked article, it smells of a small time business owner fishing for free publicity.

Cerberus recapitalized Freedom Group and bought out their "uncomfortable" investors. In PE, everything is for sale, all the time, for the right profit.

+1

These folks are venture capitalist, they never intended to keep it. Folks in VC invest at bargain prices, make the company profitable(sometimes by slashing very thin), then make a public offering, they get most or all of their initial investment back and typically retain 25-50 percent ownership. A few years later if the price continues to rise, they sell off their strong position take the money and run. Been there, done that. Not pretty, not a long term view but it what the market of investors want.