Firearms manufacturer Colt Defense LLC, which split off from Colt’s Manufacturing Co. in 2002 to focus on the defense and law enforcement market, has rejoined with its sister company.
Colt Defense said it has acquired New Colt Holding Corp., the parent company of Colt’s Manufacturing, for $60.5 million in cash. New Colt will be a wholly-owned subsidiary of Colt Defense.
The two Colt manufacturers have shared space in West Hartford since the split, and their business relationship has grown stronger of late.
Colt’s Manufacturing has acted as a conduit to the civilian and sporting market for certain products made by Colt Defense, since the latter company did not have license rights to sell Colt-branded products into the commercial market.
Sales to Colt’s Manufacturing accounted for 34 percent of Colt Defense’s sales in 2012, up from just 6 percent in 2011.
Colt Defense has seen steady increases in its sales in recent years. The company posted $213.3 million in revenue for fiscal year 2012, up from $208.8 million and $175.8 million in 2011 and 2010, respectively.
Colt’s first quarter of 2013 saw sales jump 45 percent to $63.8 million. Profits were $5.1 million compared to a loss of $7.1 million for the same quarter a year prior.
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