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Member Section => Down Range Cafe => Topic started by: Pathfinder on December 14, 2007, 06:30:44 AM

Title: DPMS Acquired by Cerberus
Post by: Pathfinder on December 14, 2007, 06:30:44 AM
As published in The Shooting Wire this AM athttp://www.golfbusinesswire.com/shooting_wire_release.html?releaseID=124422 (http://www.golfbusinesswire.com/shooting_wire_release.html?releaseID=124422)

DPMS Acquired By Cerberus Capital Management Affiliate

St. Clour, Minnesota, DPMS, a leading supplier of AR15 based rifles, parts and accessories announced today that its assets have been acquired by an affiliate of Cerberus Capital Management, L.P.

Randy Luth, DPMS founder and President, remarked, "We were looking for a partner that could enhance our expertise in operations and further develop our sales and marketing capabilities. Cerberus is a partner that can help us in those areas and provide the financial and operational resources required to expand our business. We look forward to working with them. After starting this business 21 years ago, I couldn't be more excited about our prospects for the future, both in terms of the growth we believe we can achieve and the level of satisfaction and value we can provide to our customers."

In connection with the transaction, Mr. Luth will remain President of the newly formed DPMS Firearms, LLC and will continue to oversee the strategic and operational aspects of DPMS. Added Mr. Luth, "I would like to thank our employees, first and foremost. Their hard work, and the support of our dedicated customers, has brought us to where we are today. As we look forward, we see increased interest in our new calibers, based on the proven DPMS 'LR' rifle platform. With our technical expertise and the commitment of our new owners, we intend to broaden the breadth and depth of our rifle and accessories offerings to current and new markets. We will continue to provide not only great value to our loyal customers, but also the high level of customer service we are known for."

The March Group, a private investment banking firm based in Nashville, TN, acted as financial advisor to DPMS. Principal Brantley Kemp was responsible for managing the transaction and advising DPMS on its strategic alternatives.

About DPMS Firearms, LLC

Headquartered in St. Cloud, Minnesota, DPMS Firearms, LLC manufactures and distributes a complete line of AR15 based rifles and components, as well as rifle platforms in other calibers. DPMS systems are in use by law enforcement agencies, military personnel and civilians worldwide, including the U.S. Border Patrol, security agencies in Iraq, the Jordanian army, America's top competitive shooters and big game hunters.

Media Contact:
Dustin Emholtz DPMS, (800) 578-3767
Title: Re: DPMS Acquired by Cerberus
Post by: Hazcat on December 14, 2007, 07:04:05 AM
Pathfinder,

You need to change the title to read DPMS not SPMS
Title: Re: DPMS Acquired by Cerberus
Post by: clayflingythingy on December 14, 2007, 07:39:36 AM
Bushmaster, Cobb, and now DPMS. Sounds like Cerebus wants to corner the AR market. How long before they are all rolled into one facility I wonder?
Title: Re: SPMS Acquired by Cerberus
Post by: DonWorsham on December 14, 2007, 08:47:34 AM
I wonder if they will allow you to return your lower and have it re-stamped CERBERUS?
Title: Re: DPMS Acquired by Cerberus
Post by: ellis4538 on December 14, 2007, 09:47:35 AM
I think I need to check into getting some Cerberus stock!!!!!
Title: Re: DPMS Acquired by Cerberus
Post by: tumblebug on December 14, 2007, 05:56:02 PM
Lowers with out Cerberus just went up in price. THANKS DON .
Title: Re: DPMS Acquired by Cerberus
Post by: leatherman92 on December 15, 2007, 08:24:09 AM
I think cerberus is trying to buy the whole ar-15 market.
Title: Re: DPMS Acquired by Cerberus
Post by: Pathfinder on December 15, 2007, 09:36:11 AM
I think cerberus is trying to buy the whole ar-15 market.

Hard to do, but they are buying the big dogs in the fight. Other than Remington which is a recent player in the AR world, but a big player in the hunting rifle world.

Does anyone know who the heads of Cerberus are? Here's my concern:

MB noted in his blog that buying all of these firms takes little more than pocket change to this company, so no huge investment for Cerberus. Now, if they commandeer the top and major players in the AR market, and they turn out to be flaming liberal gun grabbers - like so many nouveau riche like Soros, the guy that owns Progressive insurance and others - then they could shut down the civilian AR market once the acquisition money was repaid, and no one could stop them. Oh, yeah, with Remington, they could also cripple the sniper hunting rifle too.

Maybe I'm just being paranoid, but as learned courtesy of the Klintoons, always, always, always follow the money.

Title: Re: DPMS Acquired by Cerberus
Post by: ellis4538 on December 15, 2007, 10:51:59 AM
I thought the same thing Pathfinder but was afraid to say it!
Title: Re: DPMS Acquired by Cerberus
Post by: DonWorsham on December 15, 2007, 11:07:47 AM
Does anyone know who the heads of Cerberus are? Here's my concern:

You can read here about Cerberus,   

http://en.wikipedia.org/wiki/Cerberus_Capital_Management
Title: Re: DPMS Acquired by Cerberus
Post by: hodman on December 15, 2007, 08:39:17 PM
MB Hinted on his pod cast they Cerberus was going to buy a 1911 company in IL.
Did not see this one but it makes sense if you want consumer/ LE market.

Jon
Title: Re: DPMS Acquired by Cerberus
Post by: ismram on December 16, 2007, 10:05:15 AM
You can read here about Cerberus,   

http://en.wikipedia.org/wiki/Cerberus_Capital_Management
Wow!! I didn't know they were so big!!!
Title: Re: DPMS Acquired by Cerberus
Post by: Pathfinder on December 16, 2007, 11:22:55 AM
Pathfinder,

You need to change the title to read DPMS not SPMS

Haz, I did warn you about letting me post when I was tired! Now, I have to add, when I first get up in the AM. This is getting tougher . . . .

Back to lurking.

 8)
Title: Re: DPMS Acquired by Cerberus
Post by: tumblebug on December 16, 2007, 11:34:58 AM
Moving will get you down much worse than jet leg. Hope it's going ok.LURKING AGAIN .
Title: Re: DPMS Acquired by Cerberus
Post by: Hazcat on December 16, 2007, 03:06:12 PM
Haz, I did warn you about letting me post when I was tired! Now, I have to add, when I first get up in the AM. This is getting tougher . . . .

Back to lurking.

 8)

Coffee, and LOTS of it! ;)