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On May 14, 2007 DaimlerChrysler AG announced the sale of 80.1% of Chrysler Group to American private equity firm Cerberus Capital Management, L.P., although Daimler continues to hold a 19.9% stake. This was when the company took on its current name. The deal was finalized on August 3, 2007.
On August 6, 2007, after the announcement of the spin-off to Cerberus, the Chrysler LLC, or "The New Chrysler", unveiled a new company logo and launched its new website with a variation of the previously used Pentastar logo. Robert Nardelli also became Chairman and CEO of Chrysler under the ownership of Cerberus.
On October 23, 2008, Daimler announced that its stake in Chrysler had a book value of zero dollars after write offs and charges.
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by 48-year-old financier Steve Feinberg. Former U.S. Vice President Dan Quayle has been a prominent Cerberus spokesperson and runs one of its international units.
History
Founded in 1992, Cerberus is named for the mythological three-headed dog that guarded the gates of Hades. While many of its peers have bought out companies in order to strip assets and sell on for a profit, Cerberus builds its reputation on identifying firms that are undervalued, and assisting in rejuvenating them by working with current management.[1] Feinberg has stated to his employees that while the Cerberus name seemed like a good idea at the time, he later regretted naming the company after the mythological dog.[1]
The company has been a very active acquirer of businesses over the past several years and now has sizable investments in automotive, sportswear, paper products, military services, real estate, energy, retail, glassmaking, transportation, and building products. In 2006, its holdings amounted to $24 billion.
On October 19, 2006, John W. Snow, President George W. Bush's second United States Secretary of the Treasury, was named chairman of Cerberus.
Although Cerberus owns 80% of now troubled Chrysler Corporation, it has refused to inject cash into Chrysler, as Sen. Bob Corker pointed out at a hearing about the economic needs of the American automobile industry on December 4, 2008. In response to questioning at a hearing before the House committee on December 5, 2008 by Rep. Ginny Brown-Waite, Chrysler President and CEO Robert Nardelli said that Cerberus' other fiduciary obligations to its other investors and investments prohibited it from injecting capital.
Notable acquisitions
* Pharmaceuticals - In December 2004, the company announced the acquisition of Bayer's plasma products business and renamed it Talecris Biotherapeutics.
* Paper products - The company acquired MeadWestvaco's paper business for $2.3B in 2005 and renamed it NewPage Corporation. Cerberus also purchased, from Georgia Pacific Corporation, its Distribution Division/Building Products and all of its associated real estate. It renamed this new company BlueLinx Holdings, based in Atlanta.
* Government Services (Military, Energy, and Food & Drug) - owns IAP Worldwide Services, which bought Johnson Controls' World Services division in February 2005, and Netco Government Services.
* Real Estate - Through investment affiliate Cerberus Real Estate, the company has been making direct equity, mezzanine, first mortgage, distressed and special situation investments in all asset types. It also controls Miami Beach.-based LNR Property, a large real estate development and investment firm through subsidiary Riley Property. Cerberus also controls Kyo-ya, a Japan based group of entities that owns several Starwood managed assets in California, Hawaii and Florida.
* Retail - Cerberus purchased 655 of the 2,500 Albertson's, Inc., grocery stores, forming Albertsons LLC of Boise, Idaho, in June 2006. They also own Mervyn's department stores, which was acquired from Target Corp. In June 2007, Cerberus acquired Torex Retail Plc., a retail solutions provider in troubled waters, for approximately 400 million US dollars.[2]
* Transportation - Acquired bankrupt ANC Rental, owner of the National and Alamo car rental chains, for $230 million in October 2003 and purchased DaimlerChrysler's 45% share of debis AerFinance, an aircraft leasing business, in May 2005. Complete acquisition of debis AirFinance (later renamed AerCap) was concluded in July 2005. Also acquired North American Bus Industries, Optima Bus Corporation, and Blue Bird Corp. in the bus manufacturing sector. Cerberus also owns bus companies Coach America and American Coach Lines, which were acquired from Stagecoach Group.
* Automotive - Peguform, GDX Automotive, and Chrysler.
* Financial Services - General Motors sold a 51% stake in its GMAC finance unit to an investor group led by Cerberus Capital Management in November 2006. GM expected to receive $14 billion over the next three years from the sale of General Motors Acceptance Corp. In December 2006, Cerberus acquired the Austrian bank BAWAG P.S.K. for a reported EUR3.2 billion. In August 2007, Cerberus announced that it was closing one of their mortgage companies, Aegis Mortgage.
* Firearms - Acquired Bushmaster Firearms, Inc., from Windham, Maine native Dick Dyke for an undisclosed sum in April 2006, and purchased Remington Arms in April 2007. Under Cerberus direction, Bushmaster Firearms acquired Cobb Manufacturing, a well-respected manufacturer of large-caliber tactical rifles in August 2007. Cerberus also announced the acquisition of DPMS Panther Arms in December 2007.[3][4] Remington Arms acquired Marlin Firearms in January 2008.[5][6]
* Entertainment - Acquired a group of seven television stations, Four Points Media Group, from CBS Corporation in 2007.[7][8]
* Other holdings of the investment group include Formica, Inc., and the Aozora Bank in Japan; and cable operator Galaxy Cable.
* In 2007 Cerberus took over Corvest a promotional products company based out of Largo, FL with arms based in Simi Vally, Ca & Thorfare, NJ.
Last edited by NEPatriot; 12-12-2008 at 12:09 AM..
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Cerberus Takes Over Majority Interest In Chrysler Group and Related Financial Services Business for $7.4 Billion From DaimlerChrysler
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.
Interesting info NEPatriot...but when you posted all this, what is the point you're trying to make?
It's very simple. It has nothing to do with selling / making cars. Because auto company is tighted with a 'financial' institution, it goes down when this institution goes down.
It's 'domino effect'. You knock 1 pieace down and the rest falls down.
Four Points Media Group LLC is a television station holding company founded by the private equity firm Cerberus Capital Management in 2007 with its purchase of seven television stations previously owned by CBS Television Stations, a subsidiary of CBS Corporation.
Four Points Media Group took over the day-to-day operations of the stations via local marketing agreements on June 25. The acquisition of the stations was granted FCC approval on November 21, 2007 and closed on January 10, 2008. [1]
KUTV, the CBS affiliate in Salt Lake City, serves as the master-control hub facility for Four Points' stations. KEYE-TV in Austin, Texas, the other CBS affiliate owned by Four Points, is currently the only station not controlled by the KUTV hub facility.
Market Station ... Channel (DT) Current Affiliation
Salt Lake City KUTV 2 (34) CBS
St. George - KUSG 12 (9) RTN
Provo -
Ogden -
Orem
West Palm Beach WTVX 34 (50) The CW
Fort Pierce WTCN-CA 43 (50.3) MyNetworkTV
WWHB-CA 48 (50.2) Azteca América
Austin KEYE-TV 42 (43) CBS
Providence - WLWC 28 (22) The CW
New Bedford
Aozora Bank is the successor of the Nippon Credit Bank, which was founded in 1957 under a special government trust banking license alongside the Long-Term Credit Bank of Japan, based on the assets of Bank of Joseon in Japan. In December 1998, NCB was brought under government control in order to deal with its extraordinary amount of bad debt left over from the crash of the Japanese asset price bubble in the early 1990s: at the time, the bank was approximately ¥270 billion in debt.
An investor group led by Softbank, Orix and Tokio Marine & Fire Insurance Co. purchased NCB in 2000 and renamed it "Aozora Bank" in 2001. As part of this deal, the government included a "defect warranty provision" (瑕疵担保条項, kashi tanpo jōkō?) to the effect that Aozora could demand within the next three years that the government purchase any claims which had fallen by twenty percent or more from value. Aozora applied this provision conservatively in order to write off ¥400 billion in bad debts owed by about 100 companies, in contrast to Shinsei Bank, the contemporaneous successor of the Long-Term Credit Bank, which wrote off nearly three times as much and was criticized in political circles for doing so.
Softbank initially planned to make Aozora an investment bank for internet-related companies. However, Softbank was unsuccessful in obtaining the cooperation of the Financial Services Agency, and sold its stake to Cerberus Capital Management in September 2003. Aozora launched operations as a retail bank on April 1, 2006, and opened its first new branch in Nihombashi on November 20.
Aozora Bank is listed as the No.1 unsecured creditor to Lehman Brothers with about $463 million USD in bank loans to the investment bank as it filled for Chapter 11 bankruptcy in Sept. 2008. By comparison, the second largest unsecured creditor is Mizuho Bank with $289 million, and third largest Citibank (Hong Kong branch) with $275 million.
Last edited by NEPatriot; 12-12-2008 at 06:07 AM..
It's very simple. It has nothing to do with selling / making cars. Because auto company is tighted with a 'financial' institution, it goes down when this institution goes down.
It's 'domino effect'. You knock 1 pieace down and the rest falls down.
That's not the way it works. each business unit owned by a "holding" company operates independently. Cerberus will not go down if Chrysler fails. They are super diversified across several industries.
If Chrysler went bankrupt, no one can go after Cerberus for money owed to them. They can only go after Chrysler. That same theory applies to all the business units owned by Cerberus.
If you owned 20 companies and one of them (company XYZ) went bankrupt and that company owed millions to suppliers, employees, etc., none of them could go after you to get that money. They could only go after company XYZ.
That's not the way it works. each business unit owned by a "holding" company operates independently. Cerberus will not go down if Chrysler fails. They are super diversified across several industries.
If Chrysler went bankrupt, no one can go after Cerberus for money owed to them. They can only go after Chrysler. That same theory applies to all the business units owned by Cerberus.
If you owned 20 companies and one of them (company XYZ) went bankrupt and that company owed millions to suppliers, employees, etc., none of them could go after you to get that money. They could only go after company XYZ.
Why does Chrysler beg for money if its parent company is doing 'well' and 'helping' Chrysler?
They will beg Obama for more next year.
Last edited by NEPatriot; 12-12-2008 at 06:55 AM..
Why does Chrysler beg for money if its parent company is doing 'well' and 'helping' Chrysler?
They will beg Obama for more next year.
Because Chrysler is foreced by law to operate as an independent company. Cerberus can not take money and infuse it into Chrysler. It's all about book keeping corp. law.
The only way Chrysler can get loans is through a bank or the beg the federal gov't. Cerberus can't "loan" Chrysler money.
Because Chrysler is foreced by law to operate as an independent company. Cerberus can not take money and infuse it into Chrysler. It's all about book keeping corp. law.
The only way Chrysler can get loans is through a bank or the beg the federal gov't. Cerberus can't "loan" Chrysler money.
What if Cerberus makes a cash "gift" to the Governor of Illinois, and he, in exchange for sending that money along to Chrysler, appoints the head of Cerberus, or someone of Cerberus' choice, Senator!
This way Chrysler stays afloat and Dan Quayle can return to the Senate!!!!
I guess Cerberus is the "parent company," but saw the writing on the wall. They've sold off a significant amount. As of July, at least the Financial Times said it was more than the controlling interest:
12-12-2008, 12:07 AM
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