02-26-2014, 02:30 AM
The price reported for the deal was much too large for the LWRC brand alone. However, Colt is reportedly buying both LWRC and Matech. Matech was a contract CNC machine shop for LWRC, when in 2008 the opportunity arose for Matech's owner to purchase LWRC. At 60 million, the combined sale makes a bit more sense.
Hard to predict precisely what strategy Colt is going to pursue following closure of the deal. Matech's production capacity should be a nice addition to Colt, yet beyond that I don't see LWRC product offerings enhancing the Colt brand. Perhaps Colt believes there to be further export contracts? Piston systems are a passing fad and will remain in small niche going forward. The added weight of a piston system is not necessarily worth the small benefit of cooler operation.
Hard to predict precisely what strategy Colt is going to pursue following closure of the deal. Matech's production capacity should be a nice addition to Colt, yet beyond that I don't see LWRC product offerings enhancing the Colt brand. Perhaps Colt believes there to be further export contracts? Piston systems are a passing fad and will remain in small niche going forward. The added weight of a piston system is not necessarily worth the small benefit of cooler operation.