Cerberus Capital Management plans to let clients exit their stakes in Remington Outdoor Co., the gun maker formerly known as Freedom Group, after it failed to sell the company in the aftermath of a deadly school shooting, a person familiar with the matter said.
The New York-based firm, with about $25 billion under management, told clients in a letter on Friday that it would transfer their Remington positions to a special purpose vehicle and then allow them to sell the holdings back to the gun manufacturer, said the person, who asked not to be identified discussing private fund investments.
Remington made the Bushmaster rifle used by Adam Lanza to kill 20 children and six staff members at Sandy Hook Elementary School in Newtown, Connecticut, in December 2012. Under pressure from its public pension investors, Cerberus said shortly after the shooting it that would seek a buyer for the company.
The New York Times reported Cerberus’s plan earlier Friday, citing the client letter.
John Dillard, a spokesman for Cerberus at Weber Shandwick, declined to comment on the repurchase plan.