Cerebus Capital Buys D.P.M.S.
Cerebus Capital has purchased another Firearms Company, to add to the ones they already own. Remington, BushMaster, and Cobb Arms.
Story below:
DPMS Prepares for Future Under New Ownership
Focus on developing innovative products and serving our customers
ST. CLOUD, Minn., Dec. 13 /PRNewswire/ -- DPMS, a leading supplier of AR15 based rifles, parts and accessories announced today that its assets have been acquired by an affiliate of Cerberus Capital Management, L.P.
Randy Luth, DPMS founder and President, remarked, "We were looking for a partner that could enhance our expertise in operations and further develop our sales and marketing capabilities. Cerberus is a partner that can help us in those areas and provide the financial and operational resources required to expand our business. We look forward to working with them. After starting this business 21 years ago, I couldn't be more excited about our prospects for the future, both in terms of the growth we believe we can achieve and the level of satisfaction and value we can provide to our customers."
In connection with the transaction, Mr. Luth will remain President of the newly formed DPMS Firearms, LLC and will continue to oversee the strategic and operational aspects of DPMS. Added Mr. Luth, "I would like to thank our employees, first and foremost. Their hard work, and the support of our dedicated customers, has brought us to where we are today. As we look forward, we see increased interest in our new calibers, based on the proven DPMS 'LR' rifle platform. With our technical expertise and the commitment of our new owners, we intend to broaden the breadth and depth of our rifle and accessories offerings to current and new markets. We will continue to provide not only great value to our loyal customers, but also the high level of customer service we are known for."
The March Group, a private investment banking firm based in Nashville, TN, acted as financial advisor to DPMS. Principal Brantley Kemp was responsible for managing the transaction and advising DPMS on its strategic alternatives.
About DPMS Firearms, LLC
Headquartered in St. Cloud, Minnesota, DPMS Firearms, LLC manufactures and distributes a complete line of AR15 based rifles and components, as well as rifle platforms in other calibers. DPMS systems are in use by law enforcement agencies, military personnel and civilians worldwide, including the U.S. Border Patrol, security agencies in Iraq, the Jordanian army, America's top competitive shooters and big game hunters.
Story below:
DPMS Prepares for Future Under New Ownership
Focus on developing innovative products and serving our customers
ST. CLOUD, Minn., Dec. 13 /PRNewswire/ -- DPMS, a leading supplier of AR15 based rifles, parts and accessories announced today that its assets have been acquired by an affiliate of Cerberus Capital Management, L.P.
Randy Luth, DPMS founder and President, remarked, "We were looking for a partner that could enhance our expertise in operations and further develop our sales and marketing capabilities. Cerberus is a partner that can help us in those areas and provide the financial and operational resources required to expand our business. We look forward to working with them. After starting this business 21 years ago, I couldn't be more excited about our prospects for the future, both in terms of the growth we believe we can achieve and the level of satisfaction and value we can provide to our customers."
In connection with the transaction, Mr. Luth will remain President of the newly formed DPMS Firearms, LLC and will continue to oversee the strategic and operational aspects of DPMS. Added Mr. Luth, "I would like to thank our employees, first and foremost. Their hard work, and the support of our dedicated customers, has brought us to where we are today. As we look forward, we see increased interest in our new calibers, based on the proven DPMS 'LR' rifle platform. With our technical expertise and the commitment of our new owners, we intend to broaden the breadth and depth of our rifle and accessories offerings to current and new markets. We will continue to provide not only great value to our loyal customers, but also the high level of customer service we are known for."
The March Group, a private investment banking firm based in Nashville, TN, acted as financial advisor to DPMS. Principal Brantley Kemp was responsible for managing the transaction and advising DPMS on its strategic alternatives.
About DPMS Firearms, LLC
Headquartered in St. Cloud, Minnesota, DPMS Firearms, LLC manufactures and distributes a complete line of AR15 based rifles and components, as well as rifle platforms in other calibers. DPMS systems are in use by law enforcement agencies, military personnel and civilians worldwide, including the U.S. Border Patrol, security agencies in Iraq, the Jordanian army, America's top competitive shooters and big game hunters.
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somebody help me out. is this good or bad? 0 -
maybe they are gonna buy all the firearm companies.i bet they could buy lorcin real cheap heheh[:D] 0 -
I heard yesterday they may buy Colt. Not sure which one. 0 -
This the same Cerebus that is buying Chrysler? 0 -
This is BAD...very very very BAD.
Imagine Cerebus Capital being owned by Rosie O'donnell.
Getting ownership of a majority of firearms manufacturers...shutting them down....worse....pushing to ban firearm ownership as the "SPOKESMEN" for the industry.0 -
Accucast,
Already posted:
http://forums.forthehunt.com/topic.asp?TOPIC_ID=277647
Best.0 -
Remington is making an AR15??????????
I told you.....they are evilizing the firearm industry in their plan to remove the rights of Americans to bear arms.
Smart mothers they are.
Remington?????? AR15.....WHAT?????0 -
I think this is good. I'm didn't know that they owned Bushmaster, Remington and Cobb. But each are good companies that seem to really care about their customers. A good example is Remnington's AR. I think they are trying to change the image of the AR as an "assult" rifle with this one. They may or may not help it's image, but at least they are trying. 0 -
Supposed to be BAD. They are an investment company that buys up businesses, does whatever to make them look more profitable and then sells them off.
Look for them to merge DPMS, Bushmaster and Remington all into one company, close down all redundant manufacturing capabilities and then sell the new bigger but leaner company off to some Chinese or Japanese holding group
Americans would be loosing choices and manufacturing (a.k.a. JOBS)0 -
quote:Supposed to be BAD. They are an investment company that buys up businesses, does whatever to make them look more profitable and then sells them off.
Look for them to merge DPMS, Bushmaster and Remington all into one company, close down all redundant manufacturing capabilities and then sell the new bigger but leaner company off to some Chinese or Japanese holding group
Americans would be loosing choices and manufacturing (a.k.a. JOBS)
I think you hit the nail on the head with that one. Very unfortunate if that is how it turns out.[V]
Jon0 -
capitalism at its finest.
I did not to say there is any better way.
It's all about money, they don't give a rats ass about any of us. as long as the majority sharholders and big wigs have million and billions in there pockets they could care less where the company goes or weather it stays in buisness. They will sell it to china or japan and make another million. they will retire fat happy and wise.
Some say it is a necessary evil. that without these investors the economy will tank. I think it will tank just as hard once they have finished selling our economy to foriegn lands.
my .020 -
Oh well, what did you expect out of free market economics and capitalism? Fairness and diversity? What are you? A LIBERAL?!!?
It's funny how monopolies are a good thing (like Halliburton was so awesome back in the day) until it threatens something we care about.
Let this be a lesson in long-term thinking, folks - if it's good for the goose, it's good for the gander, so don't hurrah something unless you're willing to take some of it yourself.0 -
From what I have read further on the Cerebus acquisition of DPMS I think they just wanted the AR-10 Platform capabilities of DPMS. Cobb sold to them because he did not have enough production capacity to build the .338 Lapua rifles for Government contracts. In a recent American Firearms Industry magazine there was discussion of Cerebus wanting to purchase a major handgun company, likely could be Colt or Taurus/Rossi in Brazil. Taurus factory also has capacity to build automobile parts since Cerebus owns Chrysler and Bluebird School Bus Company.
Cerebus partial list of holdings on webpage below.
http://www.cerberuscapital.com/port_comp_pro.html
If you check around a little it seems Large Multi-National Companies are buying up most of the Firearms, security, military, and L.E. equipment manufacturers. See Armor Holdings, now owned by BAE Systems Group, list of companies including Safariland, Bianchi, Hyatts, kleenbore, B-Square, etc., etc.
http://www.armorholdings.com/ProductsGroup/Brands/default.aspx0 -
I just wonder what this will do for the quality of firearm made? Will it improve or will it slack off? 0 -
Very bad.... this company buys companies that are performing poorly, cheapens the product up as much as possible, then raises prices. Cerebus cares about nothing but bottom line profit.... they could care less about quality and such, because as soon as the company becomes profitable they will sell them off and the new buyer is stuck with a bunch of warranty problems and inferior products. That is why I no longer buy Remingtons, they just are not the same quality the were a few years ago. 0 -
That just really pisses me off. I almost have enough lunch money saved to get one and this happeneds 0 -
hmmm, time to send a resume to cerebus. [8D][:p] 0 -
I see potential positives.
Reduced costs
More economical selling prices.
Innovation
Synergy
Perhaps an AMERICAN powerhouse comparable to FN.
This strategy is opposite the traditional Capital Investment model. Instead of buying one large conglomerate and cutting it to pieces, Cerebus is assembling a one good sized compnay from several small ones. Remington couldn't make it as a rifle/shotgun maker. Neither could Winchester. Remington should have had the foresight to get into the AR business long ago to attract military sales and also the public market. By the time they realized this, it was too late. The market was established.
Look at S&W. They entered the market late, and they're making little impact. The best option for Remington to continue growth was to merge with an AR manufacturer. Plus by merging with multiple manufacturers , they are increasing capacity. Increased manufacturing capacity also means lower costs.
Perhaps Cerebus is looking to take advantage of lower cost per unit, cut prices and increase market share. It could work.
Look what Cerebus has done in the past. They buy companies, then take them public again. I think talk of selling out manufacturing to Japan or China is foolish. If they were going to do that, why not buy Norinco or some Turkish manufacturer? Plus China is not looking to buy American gun manufactures. China just copies our best. Cerebus plans to someday take this company public again.
To put it another way, small time AR manufacturers are a dime a dozen.0 -
I've been uneasy about them from the beginning when they started buying up companies....tho I'm not really superstitious.
The proper spelling is CERBERUS and in Greek etc. mythology Cerberus was the three headed hound guarding the gates of Hell.
It just sounds so damn sinister, reminds me of Damien and the Omen movies.0 -
You don't buy multiple companies to close them down. You buy multiple companies to create one big one.
I hope the guy at Remington that thought the pump rifle that takes AR magazines gets downsized. Dumb idea.0 -
Cool...
CEREBUS owns Chrysler, Remington, Tower Automotive, DPMS and other cool companies.
We will be able to get a diesel pickup truck with an AR-15 and a new Mdl. 700 in the same package deal!0 -
Yea yea yea Monkey ! 0
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