Founded in 1992, Cerberus invests primarily in companies which are near bankruptcy, and hopes to make the businesses it acquires profitable.
The company has been a voracious aquirer of businesses over the past several years and now includes sizeable investments in sportswear, paper products, military services, real estate, energy, retail, glassmaking, transportation, and building products, Its holdings amounted to $16 billion in 2005.
- Paper products- The company acquired MeadWestvaco 's paper business for $2.3B in 2005.
- Real Estate- Through investment affiliate Blackacre Capital , the company has been making direct equity investments and mezanine and first mortgages on hotel and commercial real estate. It also controls Miami Beach, FL based LNR Property , a large real estate development and investment firm through subsidiary Riley Property.
- Retail- Cerberus agreed to purchase 655 of the 2500 grocery stores from Albertsons of Boise, ID in January of 2006 and owns Mervyn's department stores, acquired from Target Corp.
- Transportation- Acquired bankrupt ANC Rental , owner of the National and Alamo car-rental chains for $230 million in October 2003 and purchased 45% of DaimlerChrysler's aircraft leasing business in May 2005.
- Financial services- General Motors sold a 51% stake in its GMAC finance unit to an investor group led by Cerberus Capital Management. GM expects to receive $14 billion over the next three years from the sale of General Motors Acceptance Corp.
Other holdings of the investment group include Formica, Inc. and the Aozora Bank in Japan; US tech firm SSA Global Technologies, and cable operator Galaxy Cable.
- Kelley, Matt. " Cerberus business network reaches far ." ''USA Today''. 19 January 2006.
- Thornton, Emily. " What's Bigger Than Cisco, Coke, Or McDonald's? " ''Business Week'' October 2005.
- Stringer, Kortney. "Car Rental Companies are sold." Wall Street Journal. 16 October 2003.
- "Acquisition of LNR Property Corporation Completed" Business Wire. 3 February 2005.
- "Hirsch, Jerry. "Albertsons To Be Sold, Divided Into 3." Los Angeles Times. 24 January 2006.
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