Cereberus derives its name from Greek mythology. By definition Cereberus was the three-headed canine guardian of the gates of Hades. Perhaps this is a part of the inspiration of the company’s “sharp-toothed ways.” Cereberus recently announced that they would be adding Chrysler to their list of acquisitions. Cereberus has made acquisitions that include “long-haul trucker Fruehaf, Air Canada and lingerie maker Frederick’s of Hollywood. Many of those companies have experienced turnarounds under Cerberus’s slashing ways, but not without pain.

New York’s Cerberus bought more than 600 struggling Albertsons supermarkets last year and laid off nearly 1,000 workers within months. Last fall, the firm bought the on-the-brink Blue Bird school bus manufacturer; earlier this month, Cerberus closed its Canadian textile company out of bankruptcy in 2004 and closed two mills within the year. It bought the Alamo and National car rental chains out of bankruptcy in 2004 and moved them from high-rent South Florida to more-affordable Tulsa.

“The firm is run by financier Stephen Fienberg, who was a trader at Drexel Burnham Lambert in the 1980s, when the firm popularized the use of “junk bonds” for corporate takeovers. Former Treasury secretary John W. Snow was named chairman of Cereberus in October. Former vice president Dan Quayle is on the board.

Cereberus distinguishes itself from other private-equity firms by maintaining a staff of in-house operations executives. Meaning: When it takes over a company, it often doesn’t have to recruit a new chief executive; it puts one of its own in place”

The complete article can be found at:

http://www.washingtonpost.com/wp-dyn/content/article/2007/05/14/AR2007051401492.html?nav=rss_email/components?nav=slate

Pam