Reuters is reporting that Cerberus Capital Management will immediately begin selling The Freedom Group …
U.S. private equity firm Cerberus Capital Management said on Tuesday it will immediately begin selling its investment in gunmaker Freedom Group in light of last week’s school shooting in Connecticut.
Cerberus acquired Bushmaster in 2006 and later merged it with other gun companies to create Freedom Group, which reported net sales of $677.3 million for the nine months ending September 2012, up from $564.6 million in the same period a year ago.
Bushmaster is the manufacturer of the AR 15 rifle used by the shooter in the Newtown killings that claimed 27 lives, including 20 school children.
“We do not believe that Freedom Group or any single company or individual can prevent senseless violence or the illegal use or procurement of firearms and ammunition,” Cerberus said in a statement.
The company has been wanting to sell its interests in The Freedom Group for some time now. Sales across the industry are very strong and they will remain strong for at least another 12 – 24 months.
Many gun owners have been uncomfortable with Cerberus Capital’s ownership of such a large portion of the gun industry and will be relived to hear they are selling it.
[ Many thanks to Alex (@RogueAcosta) for the tip. ]