CCI Federal Sold

[SeabeeKen]

Happened across this today

Vista Outdoor - Investor Relations

news.vistaoutdoor.com

 

[bozo699]

Glad I’m not working there anymore!….
Sad day when one of our largest ammunition plants sell to a foreign country!..
Wayne

 

[Kracken McGraw]

Glad I’m not working there anymore!….
Sad day when one of our largest ammunition plants sell to a foreign country!..
Wayne

Just like WalMart and a big house that’s painted white.

 

[TaperPin]

Would anybody be surprised if the new owner milked the last bit of value out of the brands name recognition and reputation and reduced quality little by little until there’s nothing left other than a discount brand?

 

[Liven The Dream]

Would anybody be surprised if the new owner milked the last bit of value out of the brands name recognition and reputation and reduced quality little by little until there’s nothing left other than a discount brand?

I think you have it Correct.
This was said when they bought them.
" Take the Money and Run"

 

[Bill K]

It is not just CCI being bought by this outfit, about 1/2 dozen others are also from the reloading/ammunition/rifle companies. Probably related to how many and how many more will be leaving US owned businesses under the Biden/Harris/Lib admin.
Did you also happen to see news report this money, under them, in the last two years the National Debt interest payments have doubled ?

 

[gdbleb]

Reading that announcement and comparing the EBITDA of Sporting Products to Outdoor Products, I'd say Mr. Strnad just bought the proverbial "Golden Goose". You don't kill something like that off. You feed it very well.

 

[bozo699]

Would anybody be surprised if the new owner milked the last bit of value out of the brands name recognition and reputation and reduced quality little by little until there’s nothing left other than a discount brand?

When I left there in late 2015 and came back to the sawmill there were around 1200 employees at the Lewiston Idaho CCI plant, it’s a relatively small community so there one of the largest businesses here besides maybe blue shield and the paper mill. My guess would be at some point they will lay everyone off then rehire at a lower wage and benefit package and yes the quality will go down.
Wayne

 

[Bronsin]

This may be why I was able to pick up 5k BR4's for so cheap last week.

 

[dcali]

I don't think this will be bad. It was bought by an operating company in the business, not some predatory private equity company. There's a big difference in motivation between the two.

 

[L.Sherm]

Seems there going down same path as Remington

 

[bozo699]

Seems there going down same path as Remington

At least Remington sold there ammunition department to Vista Outdoors not a foreign country

 

[L.Sherm]

At least Remington sold there ammunition department to Vista Outdoors not a foreign country

I'm not having much hope

 

[Flouncer]

Why aren't any of these long established companies employee owned ? Why are they available like a corner whore to be bought and abused, then tossed ?

edit: even 51% employee owned ? The prevailing system is a disaster.

 

[dcali]

Why aren't any of these long established companies employee owned ? Why are they available like a corner whore to be bought and abused, then tossed ?

edit: even 51% employee owned ? The prevailing system is a disaster.

Employees don't have that much money. These are multibillion dollar companies.

 

[JimSC]

Getting old sucks in a lot of ways but in other ways I am glad I am down to my last decade or so

 

[dcali]

Remington is a totally different situation. It was bought and rolled up by a private equity firm who's entire business model is acquiring and squeezing companies and then flipping them for a profit. Often, these ivy leaguers have no idea how to actually run a business outside of financially engineering it, and it showed with Remington. Vista was the beneficiary of that mistake.

With this deal, the ammunition business is being sold to another company who makes ammunition because Vista is worth more split up than it is kept together. It's a totally different type of transaction. I'm not concerned in the least, although I do feel for Remington employees who probably feel like they're getting jerked around quite a bit lately.

 

[TaperPin]

I don't think this will be bad. It was bought by an operating company in the business, not some predatory private equity company. There's a big difference in motivation between the two.

Hopefully that’s the case.

We’re somewhat insulated from Europe‘s anxieties, but with the Russian/Ukraine mess I’ll bet countries of all shapes and sizes are stockpiling ammo. This is probably one of the largest spikes in demand that most of us have seen - a private company can increase production for lucrative contracts quicker buying up companies, rather than building new ones. Hopefully that doesn’t mean even less supply for US shooters.

 

[dcali]

Hopefully that’s the case.

We’re somewhat insulated from Europe‘s anxieties, but with the Russian/Ukraine mess I’ll bet countries of all shapes and sizes are stockpiling ammo. This is probably one of the largest spikes in demand that most of us have seen - a private company can increase production for lucrative contracts quicker buying up companies, rather than building new ones. Hopefully that doesn’t mean even less supply for US shooters.

I do share that concern, but it's not like they're rollign all the companies togeher on an operational level. I think it's reasonable to think that unless something changes in Ukraine, it will largely be business as usual - more like Nammo buying Berger than Cerberus buying Remington. (Like really, they named the company Cerberus? It's a bit on the nose for what they do for a living).

 

[gdbleb]

I do share that concern, but it's not like they're rollign all the companies togeher on an operational level. I think it's reasonable to think that unless something changes in Ukraine, it will largely be business as usual - more like Nammo buying Berger than Cerberus buying Remington. (Like really, they named the company Cerberus? It's a bit on the nose for what they do for a living).

Feinberg (Cerberus) was reported to be a hunter and a gun lover. Sandy Hook blew a hole in that investment strategy. Firearms are radioactive now in the investment world. American companies will carry very little assets on their balance sheets and will be fenced-off from each other to isolate damage from the lawsuits that will continue to infinity. The Protection of Lawful Commerce in Arms Act (PLCAA) will be under attack permanently. Profits will accrue to the foreign parent companies which will also inject capital when required. These companies are a gold mine. You just cannot keep that gold in the USA.