NEWS & VIEWS

Global private equity and venture capital news and research

MidOcean latest buyout firm to eye gun-related business exit after Sandy Hook

6 Aug 2013

BushnellMidOcean Partners is reportedly in advanced talks to sell gun accessory maker Bushnell Outdoor Products amid increased pressure on private equity firms to exit gun-related companies following the Sandy Hook school massacre.

Alliant Techsystems, the world’s largest ammunition maker, is consider a bid of around $1bn for the asset according to Reuters, which cited two sources familiar with the matter.

Those people said the decision to sell was not influenced by the Sandy Hook shootings, which saw 20-year-old Adam Lanza murder 20 children and six adults at the school in December last year.

Since then Cerberus Capital, the owners of the company which built the AR 15 assault rifle used in the killings, has been attempting to offload it amid pressure from investors including pension giant CalSTRS.

Last month Cerberus CEO Stephen Feinberg decided against bidding for gunmaker Freedom Group following reports he had been tapping up fellow multi-millionaires to buy Freedom Group, partly to avoiding a low exit for the buyout house.

Despite reports that there had previously been unwillingness to finance bids for Freedom Group the company is said to be in talks with a number of potential acquirers.

There were also said to be concerns that a sale to Feinberg and his partners would unsettle Cerberus’ LPs.

In May Norwest Equity Partners agreed a surprise sale of Caliber, the parent company of hunting rifle and shotgun maker Savage Sports, less than 18 months after buying the business.

The $315m cash sale represented a 5.5-times EBITDA multiple. Norwest did not release a statement following the exit.

Copyright © 2013 AltAssets

FUNDRAISING & INVESTOR RELATIONS


Legals & Terms of UsePrivacy Policy


AltAssets is registered as a trademark of Investor Networks Limited (06695690).
Registered Office: Zetland House, 5-25 Scrutton St, London EC2A 4HJ
Content is © AltAssets 2000-2014