In an incredible response to American anger over the Sandy Hook massacre, the owner of the nation’s largest gun and ammunition manufacturer — which includes notable brands like Remington and Bushmaster — is putting the company up for sale because of the Sandy Hook shooting that took the lives of 20 children and six adults. Bushmaster has quickly become known as the infamous brand of rifle used in the Sandy Hook shooting in Newtown, Connecticut.
Cerberus Capital Management, which created Freedom Group, now the parent company of Bushmaster, Remington, and Marlin, says it’s just not worth the attention and hassle after Sandy Hook.
“It is apparent that the Sandy Hook tragedy was a watershed event that has raised the national debate on gun control to an unprecedented level,” Cerberus states via a press release:
The debate essentially focuses on the balance between public safety and the scope of the Constitutional rights under the Second Amendment. As a Firm, we are investors, not statesmen or policy makers. 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. It is not our role to take positions, or attempt to shape or influence the gun control policy debate. That is the job of our federal and state legislators.
There are, however, actions that we as a firm can take. Accordingly, we have determined to immediately engage in a formal process to sell our investment in Freedom Group.
“According to Fortune‘s Dan Primack, Cerberus’ sale of Freedom Group is ‘not a financial decision,’ as the holding company’s value is ‘artificially low,’ and a buyer will be hard to find,” Neetzan Zimmerman at Gawker notes:
However, it is worth noting that the California State Teachers’ Retirement System, one of Cerberus’ largest investors, said yesterday that it would review its indirect investment in Freedom Group in light of the Newtown tragedy.
Also yesterday, Walmart unexpectedly ceased online sales of the Bushmaster assault rifle used by shooter Adam Lanza, though its unclear how long the moratorium will last.
Dick’s Sporting Goods, another major retailer of sporting rifles, said in a statement this morning that it would be suspending the sale of semiautomatic rifles in all stores nationwide for an indefinite period of time.
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