Lupey
02-11-2005, 10:24 AM
Héroux-Devtek to sell its Logistics & Defence Division, Diemaco to Focus on Aerospace and Industrial Products
KITCHENER, Feb. 10 /CNW Telbec/ - Héroux-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. Héroux-Devtek acquired Diemaco in 2000, as part of its
merger with Devtek Corporation. Sales at Diemaco for Héroux-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 Héroux-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 Héroux-Devtek's President,
Gilles Labbé. "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
Héroux-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, Québec. Héroux-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. Héroux-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.
For further information: Héroux-Devtek Inc.: Gilles Labbé, President
and Chief Executive Officer, (450) 679-3330; Maison Brison: Rick Leckner,
(514) 731-0000
KITCHENER, Feb. 10 /CNW Telbec/ - Héroux-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. Héroux-Devtek acquired Diemaco in 2000, as part of its
merger with Devtek Corporation. Sales at Diemaco for Héroux-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 Héroux-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 Héroux-Devtek's President,
Gilles Labbé. "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
Héroux-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, Québec. Héroux-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. Héroux-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.
For further information: Héroux-Devtek Inc.: Gilles Labbé, President
and Chief Executive Officer, (450) 679-3330; Maison Brison: Rick Leckner,
(514) 731-0000