An interesting article I just found.
Heroux-Devtek to sell its Logistics & Defence Division, Diemaco to Focus on Aerospace and Industrial Products
2/10/05
KITCHENER, Feb 10, 2005 (CNW Telbec via COMTEX) --
Heroux-Devtek Inc. (TSX: HRX), a leading Canadian manufacturer of aerospace and industrial products, announced today the execution of an agreement with Colt Defense LLC of West Hartford, Connecticut for the sale of its Logistics & Defence Division, Diemaco. The basic sale price was established at $16.5 million, subject to certain working capital adjustments.
Diemaco is a world class defence manufacturer with a reputation for providing innovative, state-of-the-art small arms solutions, for military and law enforcement forces. Heroux-Devtek acquired Diemaco in 2000, as part of its merger with Devtek Corporation. Sales at Diemaco for Heroux-Devtek's fiscal year ended March 31, 2004 were $20.5 million, and $13.9 million for the first nine months this current fiscal year. The unit is profitable and currently employs 100.
"While Diemaco has prospered under the Heroux-Devtek umbrella, a strategic buyer such as Colt is more beneficial for the future development of the operation as well as for its customers," stated Heroux-Devtek's President, Gilles Labbe. "This is a logical step in our evolution, as we plan, in the future, to focus more on our core competencies in aerospace and industrial products."
The transaction is subject to certain regulatory and governmental approvals and other customary conditions. Closing is expected to occur within the next few months.
This follows the acquisition, last April, of Dallas-based Progressive Incorporated, a manufacturer of large structural components for military aircrafts, which represented the first step in this direction.
Colt Defense Profile
Colt Defense LLC is an American company tracing back its origins to the company founded by Samuel Colt, an American icon, in 1836. Colt Defense products command a global presence as the weapons of choice for military and law enforcement use in over 80 countries worldwide. Colt is the owner of the technical data packages for the M16 and M4 families of weapons. The M4 carbine is the mainstay of the U.S. Armed Forces. Over 8 million M16 and M4 weapons have been installed all over the world. Colt Defense is a privately held company.
Profile
Heroux-Devtek Inc., a Canadian company, specializes in the design, development, manufacture and repair of aerospace and industrial products. The Company's head office is located in Longueuil, Quebec. Heroux-Devtek operates nine business units grouped under four divisions: the Landing Gear Division, the Aerostructure Division, the Gas Turbine Components Division and the Logistics and Defence Division. 75% of the Company's sales are outside Canada, mainly in the United States. Heroux-Devtek's shares trade on the Toronto Stock Exchange under the symbol HRX.
Forward-looking statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=32545
For further information: Heroux-Devtek Inc.: Gilles Labbe, President and Chief Executive Officer, (450) 679-3330; Maison Brison: Rick Leckner, (514) 731-0000
Copyright (C) 2005 CNW, All rights reserved
Heroux-Devtek to sell its Logistics & Defence Division, Diemaco to Focus on Aerospace and Industrial Products
2/10/05
KITCHENER, Feb 10, 2005 (CNW Telbec via COMTEX) --
Heroux-Devtek Inc. (TSX: HRX), a leading Canadian manufacturer of aerospace and industrial products, announced today the execution of an agreement with Colt Defense LLC of West Hartford, Connecticut for the sale of its Logistics & Defence Division, Diemaco. The basic sale price was established at $16.5 million, subject to certain working capital adjustments.
Diemaco is a world class defence manufacturer with a reputation for providing innovative, state-of-the-art small arms solutions, for military and law enforcement forces. Heroux-Devtek acquired Diemaco in 2000, as part of its merger with Devtek Corporation. Sales at Diemaco for Heroux-Devtek's fiscal year ended March 31, 2004 were $20.5 million, and $13.9 million for the first nine months this current fiscal year. The unit is profitable and currently employs 100.
"While Diemaco has prospered under the Heroux-Devtek umbrella, a strategic buyer such as Colt is more beneficial for the future development of the operation as well as for its customers," stated Heroux-Devtek's President, Gilles Labbe. "This is a logical step in our evolution, as we plan, in the future, to focus more on our core competencies in aerospace and industrial products."
The transaction is subject to certain regulatory and governmental approvals and other customary conditions. Closing is expected to occur within the next few months.
This follows the acquisition, last April, of Dallas-based Progressive Incorporated, a manufacturer of large structural components for military aircrafts, which represented the first step in this direction.
Colt Defense Profile
Colt Defense LLC is an American company tracing back its origins to the company founded by Samuel Colt, an American icon, in 1836. Colt Defense products command a global presence as the weapons of choice for military and law enforcement use in over 80 countries worldwide. Colt is the owner of the technical data packages for the M16 and M4 families of weapons. The M4 carbine is the mainstay of the U.S. Armed Forces. Over 8 million M16 and M4 weapons have been installed all over the world. Colt Defense is a privately held company.
Profile
Heroux-Devtek Inc., a Canadian company, specializes in the design, development, manufacture and repair of aerospace and industrial products. The Company's head office is located in Longueuil, Quebec. Heroux-Devtek operates nine business units grouped under four divisions: the Landing Gear Division, the Aerostructure Division, the Gas Turbine Components Division and the Logistics and Defence Division. 75% of the Company's sales are outside Canada, mainly in the United States. Heroux-Devtek's shares trade on the Toronto Stock Exchange under the symbol HRX.
Forward-looking statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=32545
For further information: Heroux-Devtek Inc.: Gilles Labbe, President and Chief Executive Officer, (450) 679-3330; Maison Brison: Rick Leckner, (514) 731-0000
Copyright (C) 2005 CNW, All rights reserved
Rather I was curious if Diemaco- and the Canadian soldier- would benefit from some of Colt's good design implementations and vice-versa. Thus Canadian soldiers would possess an excellent rifle. From what I understand the triad rails on the C7A2 are ill-advised and it would be far better to adopt a proper railing system as on the American variants.
