# Colt Defense purchases Diemaco



## ramy (11 Feb 2005)

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


----------



## basxav (11 Feb 2005)

Hi all:
I heard on the news that Colt has bought Diemaco. Any thoughts? Could Colt simply close Diemaco and produce the Canadian variant of the M16 family in the States? Or is that unlikely?

xavier


----------



## Kal (11 Feb 2005)

I highly doubt they would close Diemaco.  I'm not really sure if it's a great thing for the company as a whole or for Canada and our armed forced.  I could see, however, Colt redesigning some of the components of the M-16 to C7 specs. and some of the components on the C7 to M16 specs.  Perhaps the C7 family will get a 7 position stock and ditch the triad and _thermelt_ mags.  Maybe both rifles will remain unchanged.  I don't like the fact that it isn't 100% Canadian owned and operated company anymore, though.


----------



## Da_man (11 Feb 2005)

Does this mean were gonna start using M16s?


----------



## Scratch_043 (11 Feb 2005)

I would hope that the purchase means the opposite, that Colt liked what they saw in the Diemaco variants (ie. C7, C8, etc.) and bought the company so that they can use the design.

Wishful thinking, I know.

Nic


----------



## basxav (11 Feb 2005)

Hi all:
Thanks for your comments. I'm also leery about Colt's purchases. Guess we'll have to wait and see.
Kal:
Could you clarify by what you mean by the  triad? Is that the rail additions to the C7A2?

Thanks again!

xavier


----------



## Scoobie Newbie (12 Feb 2005)

More found here:
http://army.ca/forums/threads/26658.0


----------



## KevinB (12 Feb 2005)

Diemaco was already a COLT licencee - and did COlts european sales - as well as subcontracting parts from Colt.

Diemaci has been losing money for years - and DevTek-Heroux (an Aerospace Company) had been tryign to sell it off prior.  

This is the first I heard of it and I figured I would have hear drumblings at SHOT - but either way it will likely be better for the CF as a whole.


----------



## Blakey (12 Feb 2005)

Kal said:
			
		

> and _thermelt_ mags.



We haven't had "thermold mags" in ages.....


----------



## Kal (12 Feb 2005)

Basxav - Triad meaning the mounting rails on the C7A2.  Something more along the lines of the KAS RAS.
Blakey - Aware that the plastic mags haven't been used in years, but that doesn't mean Diemaco hasn't stopped making them......


----------



## basxav (12 Feb 2005)

Kal & CFL:
Thanks!

KevinB:
How will it be better for Colt buying Diemaco? Canadian soldiers  using even better rifles?

Thanks again all!
xavier


----------



## KevinB (14 Feb 2005)

I can't see Colt putting their stamp on the POS TRIAD-1 mount...

 Colt also does not seem (looking at boths pricing) to try and bleed out their clients fiscally.

Kal was correct that we hope it means the RAS on guns, rather than the crack in the cold (yes its happend) and lest put my really expensive IR laser/illuminator out front where it can take all the abuse, TRIAD.


----------



## Scoobie Newbie (14 Feb 2005)

Too bad your a Cpl.  They may have listened to you if you had a WO epilette.


----------



## KevinB (14 Feb 2005)

Well when I am a civie I am going to do weapon critiques and boondoogles for Scott Taylor  ;D

 But who am I kidding - if the $10 million dollar boot sole fiasco did not phase anyone why woudl a few hundred thousand dollars of N/S lasers...


----------



## basxav (15 Feb 2005)

SBaker:
O no I have no intention of restarting that silly debate.   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.

xavier


----------



## 1feral1 (18 Mar 2005)

I was reading on www.colt.com today that Colt bought Diemaco from its parent company based in (Heroux-Devetek) Quebec. Diemaco will be called Colt Canada Corp. This all was back on 10 Feb 05.

Anyways this is old news, but its new to me.

Cold beers,

Wes


----------



## Cpl.Banks (20 Mar 2005)

ARRRGGGGG! another prime example of foreign markets buying up Canadian company's, I dont like it at all, considering that the U.S own alot of our companines including *tear* Tim Hortons! I know this isnt a post about Canada's soverignty but I still cant help saying it why do we let ourselves be bought out and americanized?! gahhh ill open a post lol...
UBIQUE!!!!!


----------



## KevinB (20 Mar 2005)

:

 Cadet-Cpl. Banks I rather it be American than French...


----------



## Cpl.Banks (20 Mar 2005)

Whats wrong with french people/companies?


----------



## Redeye (20 Mar 2005)

Cpl.Banks(Cdt.) said:
			
		

> Whats wrong with french people/companies?



Better question - what difference does it make who owns Diemaco (or any other firm)?


----------



## Cpl.Banks (20 Mar 2005)

None, thats why I was outraged to hear KevinB's comment, the fact of the matter weather you are English-Canadian or French-Canadian it does not matter. But say the US on the other hand with their hands in already most of our industry, controlling it. Diemaco was  govt supported business right, it made OUR rifles in Canada, we shouldn't have to rely on a foreign investor everytime they hand us a check... 
UBIQUE!!!


----------



## the 48th regulator (20 Mar 2005)

At a very high margin, no doubt.

Especially to their own Canadian government.


tess


----------



## Duke (20 Mar 2005)

C/Cpl Banks,

I believe the reference was to a French company from France, not French Canadians.

Merci

Duke.


----------



## Cpl.Banks (20 Mar 2005)

Right, well he did not specify, the first thing that did come to mind was French-Canadian. But my comment still stands we should buy Canadian, unless there are overwhelming advantages that Colt can offer us? And Tess, do you have nay figures supporting your statement, just curious. Thanks
UBIQUE!!!


----------



## the 48th regulator (20 Mar 2005)

nope,

My experience in the world of sales allows me My opinion.   And, before you ask, it is not in weapons.

But, unlike you, I have no problem with an American company selling to us a weapon especially a company like Colt, who has had many years expericne developing this type of rifle.

Buy the bread from the baker, pal.

tess


----------



## Cpl.Banks (20 Mar 2005)

Coulndt the baker be Canadian?! And I do know that colt is a reputable company that has been making excellent firearms for a very long time. I just wish we could buy in Canada so we could keep the income in the country.  
UBIQUE!!!!!!!!!!


----------



## Duke (20 Mar 2005)

You would be buying from a Canadian Company , C/Cpl Banks. Colt Canada Limited. The company would employ Canadian employees, purchase Canadian parts and pay Canadian taxes. 

Duke


----------



## the 48th regulator (20 Mar 2005)

They manufactured the weapons under licence from Colt, so in essence we were already paying Colt for the rifles, plus a fee tacked on to Demaico for their services.

Colt Canada will now manufacture and supply the demand.   So really, I look at it as a name change, not the disapearence of a Canadaian company.

tess


----------



## McAllister (20 Mar 2005)

If Diemacos cease to exist and the canadian soldier carries Colts instead, we'd probably still use the semi/full auto variants, right?


----------



## Duke (20 Mar 2005)

???

How could DND's specification for a service rifle possibly change due to a corporate acquisition?

Duke


----------



## KevinB (20 Mar 2005)

CADET Banks

 Learn to READ   -- Did I say French Canadian or FRENCH?

Diemaco is located in Kitchener - it was previosuly owned by Devtek-Heroux a FRENCH AEROSPACE company.
 It made weapons under license (which the Cdn Gov't held) from Colt.

Diemaco was notorious from profiteering on the CF - they quoted $800 for a Knights Armament Company (KAC) M4 RAS (rail accessory system) - these systems retail in the US for $275 USD...     The US Gov't price is $200   --- Dealer is $250 last time I looked

Now WHO do you think pocketed the excess?


Secondly WE (the CF) will benifit from Colt's much larger R&D budget and the resultant trickle down from that.


LASTLY - the CF is not welfare, WE should only buy Canadian when it is a better product and a cost effective solution.   Propping up some shyster for pork barrel politics is HORSESHIT!!!!!!!!





edited for spelling...


----------



## the 48th regulator (20 Mar 2005)

once again Kev,

I could not have said it better, especially the part about _Propping up some shyster for pork barrel politics _ 

tess


----------



## Ex-Dragoon (20 Mar 2005)

I think the idea of buying only Canadian products is the reason why our procurement of new equipment is so far out of whack that the gear is almost obsolete by the time we finally get it. Example.
1- We have to set up committees to study it to death
2- We have to set up a committee to make sure the original committee did the job right
3- We then have MPs vying for the factory to be put in their riding
4- We have to set up a committee to determines who builds the factory.
5- See 2
6- election happens and the process starts all over again
7- Digging starts but some group comes forward to have the area researched just to make sure the lost tribe of Oga Boga never opened the first Stone age Tim Hortons on the factory location.
8- One of the companies building the factory is investigated by the RCMP for something they may or may have not done so construction is delayed.
9- Company cleared. Construction begins
10- First new piece of gear developed was not to CF specs and has to be sent back to be corrected. Factory has to be retooled to the correct specifications
11- New gear delivered and goes on a protracted testing period where more faults are discovered.
12- Faults corrected...sent out for testing
13- committee reviews the test process
14- committee recommends changes or adoption for equipment
15- Equipment finally adopted by the CF and you that retired some time ago sees your kids using it after they join.


----------



## Cpl.Banks (21 Mar 2005)

Why? Why do we go though all this just to get out dated and basically useless equipment, these phases must all take months...EACH!! How do other countries do it, do their military have more of a control on everything, such as no metaling of politicians, because we all know they always make the best decisions :
UBIQUE!!!


----------



## Canadian Sig (21 Mar 2005)

Cadet Cpl. Banks,

    If you want to know what buying Canadian can get us then do a search on this forum or on Google for LSVW's. See for yourself what happens when politics gets in the way of purchasing.


----------



## Ex-Dragoon (21 Mar 2005)

With the exception of the Upholders (and I still hold out hope for them) I think our best bet would be to buy offshore and off the shelf. maybe we will give the Canadian industry a much needed wake up call.


----------



## KevinB (21 Mar 2005)

The problem is in the procurement mentality.

 The US RFI (Rapid Field Initiative) is designed to allow units to acquire need kick without the headache of consuming trials that endup being a comittee and the kit does not work for everyone.

 However problems exist with that - in that some units can favour certain vendors and kickbacks have been alledged.


----------



## 1feral1 (24 Mar 2005)

Cpl.Banks(Cdt.) said:
			
		

> ARRRGGGGG! another prime example of foreign markets buying up Canadian company's, I dont like it at all, considering that the U.S own alot of our companines including *tear* Tim Hortons! I know this isnt a post about Canada's soverignty but I still cant help saying it why do we let ourselves be bought out and americanized?! gahhh ill open a post lol...
> UBIQUE!!!!!



Just remember Banks, the C7 family of weapons is American weapons system made under licence in Canada, and the Minimi is an FN made (Herstal) wpn with some Cdn parts. There is however some Cdn engineering involved. At the end of the day Canada will still have a small arms industry.

Regards,

Wes


----------



## BITTER PPLCI CPL (13 Aug 2005)

Does anyone think this will be good for our military or no effect at all?


----------



## Expat (13 Aug 2005)

Hmm I wonder if Para Ord's will still be manufactured by ex Diemaco. Fine hand guns got to love mine


----------



## Hunter911 (15 Aug 2005)

I didnt like to think of Diemaco as an American owned company, but in the end if the Triad dissapears ill be happy... so what can i say besides we shall have to sit back and wait to see what happeneds!


----------



## MikeM (12 Sep 2005)

Looks like it's now official.. Diemaco is now known exclusively as Colt Canada.

I just attempted to visit the Diemaco website a couple of minutes ago. The site is currently under construction, and is now under the name of "Colt Canada, Names May Change, But Legends Live On"

http://www.diemaco.com

EDIT: Perhaps this should be merged into the "Colt Buys Diemaco" thread.


----------



## KevinB (12 Sep 2005)

It was official in July...


----------



## MikeM (12 Sep 2005)

Perhaps I should have re-phrased, they are exclusively under the name Colt Canada as of recent.

Brain not functioning so well today ;D


----------



## KevinB (12 Sep 2005)

Actually they where under the Colt Canada gammut sometime in late July/early Aug - they just finally got to the website now.

 Anyone here think that FN will allow COLT (a rival) to produce ANY C9 or C6 stuff...


----------



## Britney Spears (12 Sep 2005)

> Anyone here think that FN will allow COLT (a rival) to produce ANY C9 or C6 stuff...



So I gues we can say goodbye to the C9A2 program eh?

AFAIK Colt/Diemaco doesn't make anything that competes with the C6/C9, except for that C7 LSW thing. If they start making C6/C9 accesories, it would just mean more people will buy C6/C9s, and be a good thing for FN no?


----------



## KevinB (12 Sep 2005)

Well considering Diemaco had the Minimi and MAG-58 TDP's I think FN might have revoked Diemaco's rights to them - - they dont want Colt crunching out their own versions at no cost benifit to FN...

 My guess is that is why we saw the Diemaco acquisition of the Ares Defence Shrike.

As for the C9A2 - the buttstock adaptor is licensed from FN - the barrel we have are just cut C9 barrels (so they need to be on adverse to function...)  not proper Mk46 or Para barrels.

 The majority of reg disposable machine guns are nearing their life anyway.  A new buttstock and Barrel does not help the fact the internals and body are fatiguing - Just look at KevinS's foot as a prime example when he was hit with a malfunctioning C9A2 (broken safety spring)

Despite Soldier Systems glue bag idea that we will have OICW / XM-8/XM26 setups for SARPII/III common sense has us locked into the current sustems with slight mods until a next generation system comes on line (Revolutionary not evolutionary) -- so until plasma rifles or similar tech comes there does not seem any benifits to change.

 Add in a LMG setup for the C8 (a la Shrike) and you have a large comonality of parts at the section level.


----------



## brihard (13 Sep 2005)

Whoah, hang on- when did Diemaco acquire Ares? I never caught wind of that. Can you give me a link to that?

I don't want to start another Shrike debate, but when the C9 hits end life, a belt fed upper for the C8 could perhaps be a viable replacement, particularly in CQB.

If anyone hears anything further on any new Colt/Diemaco/Ares deals, please post it.


----------



## KevinB (13 Sep 2005)

I heard that Diemaco bought the right to the mil/le sale/production of the Shrike from some USSOC guys involved with Diemaco on other stuff.  I was told it was "public domain info", and not close hold.  It was confirmed by others in the industry doing stuff with Diemaco.

I don't have any links sorry


----------



## brihard (13 Sep 2005)

No worries- I've not seen you to present something as fact that you weren't sure of before. Thanks.


----------



## Ex-Dragoon (20 Sep 2005)

Looks like the Diemaco name is no more...just checked the site and while its currently under construction its now referred to as Colt Canada.


----------



## Kal (20 Sep 2005)

I'm wondering if this means one will able to purchase a semi-auto 'diemaco' rifle, or at least an upper receiver like the rest of Colts rifles.  An SFW upper sure would be nice.  Hey, a guy can hope right? :-\


----------



## career_radio-checker (28 Jan 2006)

If this topic has already been initiated in a thread please move it but I've been waiting for this website to come online for a couple of months now and had to share the good news. Let the ogling over forbidden weapons begin  :threat: .

http://www.diemaco.com/


----------



## fourninerzero (28 Jan 2006)

the website is up, but only the mainpage. the sections leading to the weapons and other areas are still under construction.


----------

