Freedom Group

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Freedom Group
Type Private
Industry Firearms/Sporting Goods
Founded 2007[1]
Headquarters Madison, North Carolina
Key people George Kollitides (CEO)
Scott Blackwell (President)
Revenue Increase US$ 848.7 million (2009)
Net income Increase US$ 24.4 million (2009)[2]
Owner(s) Cerberus Capital Management
Employees 2,800
Website http://www.freedom-group.com/

Freedom Group is an American firearms manufacturer holding company which has acquired notable brands such as Bushmaster, DPMS, and Remington Arms.[3]

Freedom Group is owned by Cerberus Capital Management, a private equity investment firm. However, following the 2012 Sandy Hook Elementary School shooting, Cerberus announced its intention to divest itself of Freedom Group[4]; as of December 2013, it had not done so.[5]

Companies[edit]

History[edit]

In March 2012, Robert Nardelli stepped down as CEO of Freedom Group and as head of the operations and advisory business of Cerberus Capital Management LP and became adviser to Stephen Feinberg, the head and founder of Cerberus. He became CEO of Freedom Group in September 2010 as the North Carolina-based gun maker searched for a permanent CEO. The new chief executive is George Kollitides, formerly working as managing director for Cerberus who was leading the Freedom Group deal.[7]

In December 2012, citing the Sandy Hook Elementary School shooting as "a watershed event that has raised the national debate on gun control to an unprecedented level," Cerberus announced it would sell all of its investments in Freedom Group. The private equity firm said it would retain a financial adviser to sell its interests in Freedom Group, and would return the proceeds to investors.[8][9] The decision was made after a California pension board, a Cerberus stakeholder, announced it would dispose of all stakes it held in firearms manufacturers that make weapons banned by state law. As of December 2013, Cerberus still owned the company, but planned to offer investors a means to sell their interest in Freedom Group.[5]

References[edit]

  1. ^ Singer, Natasha (26 November 2011). "How Freedom Group Became the Gun Industry's Giant". The New York Times. 
  2. ^ http://www.iposcoop.com/index.php?option=com_content&task=view&id=1803&Itemid=134 Freedom Group - IPO Scoop
  3. ^ http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=46910617 Business profile
  4. ^ Cerebus Capitol Management. "Cerberus Capital Management Statement Regarding Freedom Group, Inc." (Press release). PRNewswire. Retrieved 18 December 2012. 
  5. ^ a b Stephen Foley; Ed Hammond (December 9, 2013). "Cerberus offers investors way out of gunmaker Freedom Group". Financial Times. Retrieved December 15, 2013. 
  6. ^ http://www.handgunsmag.com/2012/01/30/breaking-news-freedom-group-acquires-para-usa/
  7. ^ Banerjee, Devin (9 March 2012). "Nardelli Leaves Cerberus Capital Post to Focus on Own Firm". Bloomberg. Retrieved 12 April 2012. 
  8. ^ Nagourney, Adam (December 18, 2012). "Broad Gun Control Efforts Introduced in Wake of Shooting". The New York Times. Retrieved December 19, 2012. 
  9. ^ Cerebus Capitol Management. "Cerberus Capital Management Statement Regarding Freedom Group, Inc." (Press release). PRNewswire. Retrieved 18 December 2012. 

External links[edit]