Cerberus seeks $25M equity investment for gun unit: WSJ
Five days before the anniversary of the Sandy Hook Elementary School massacre, Cerberus Capital Management is seeking $200 million in debt and a $25 million equity investment for its gun business from an unnamed third party, The Wall Street Journal reported Monday.
The newspaper cited a lenders presentation made by the private equity firm on Monday.
Cerberus acquired Bushmaster in 2006 and has since added other properties to create the Freedom Group—one of the nation's largest gun makers, the Journal reported.
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The move would raise Freedom Group's value to $1.2 billion and let some of Cerberus' partners cash out their stakes in the gun business. The investment firm has been looking for a buyer since the Newtown, Conn., massacre on Dec. 14, 2012, when a Bushmaster was used to kill children and staff members at Sandy Hook, the newspaper said.
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Ahead of the anniversary, protesters gathered Monday outside of the Cerberus offices in New York pressuring the firm to follow up on its promise to sell its interest in Freedom Group.
Read the full article here.