Cerberus Capitol Management is selling its stake in firearms conglomerate The Freedom Group. The Freedom Group is the largest private manufacturer of civilian firearms and ammunition in the U.S.
Brands under The Freedom Group umbrella include Remington, Marlin, H & R, Dakota Arms, TAPCO, DPMS/Panther Arms. Parker Gunmakers, Barnes Bullets, Advanced Armament, Para USA, Mountain Khakis and Bushmaster Firearms.
A Bushmaster rifle was used in the Dec, 14 Sandy Hook School shooting in Newtown, Connecticut.
A statement from Cerberus lamented the Sandy Hook incident, saying the company’s leaders were ”shocked and deeply saddened by the events.”
“We cannot comprehend the losses suffered by the families and friends of those killed by the unthinkable crimes committed that day,” it continued. “No words or actions can lessen the enormity of this event or make a dent in the pain that was inflicted on so many.”
“As a Firm, we are investors, not statesmen or policy makers,” the company cautioned. ”Our role is to make investments on behalf of our clients who are comprised of the pension plans of firemen, teachers, policemen and other municipal workers and unions, endowments, and other institutions and individuals.”
Reuters reported that the sale came after the California State Teachers’ Retirement System (CalSTRS) put pressure on Cerberus, saying Monday that it was “reviewing its investment with the private equity firm.”
CalSTRS’ Private Equity Portfolio Performance report dated March 31 indicated that it had committed capital totaling $751,410,000 in Cerberus going back to 2003.
“We believe that this decision allows us to meet our obligations to the investors whose interests we are entrusted to protect without being drawn into the national debate that is more properly pursued by those with the formal charter and public responsibility to do so,” Cerberus concluded in its statement.