William Malcolm

Ceska Zbrojovka Acquires Colt

CZG Group – Česká zbrojovka Group SE (CZG) has signed a final agreement to acquire Colt Holding Company LLC. The company announced it today. Under the terms of the deal, CZG will acquire a 100% stake in Colt for $ 220 million (CZK 4.7 billion) in cash and 1,098,620 newly issued ordinary shares in CZG.

Colt Holding Company LLC is the parent company of the US arms manufacturer Colt’s Manufacturing Company LLC. CZG will finance the acquisition from cash resources, including funds from the recent primary public offering of shares and the planned bond issue. The regulatory authorities must approve the transaction. Its settlement is expected in the first half of this year.

“This merger is a strategic step for both companies. The acquisition of Colt, an iconic brand and benchmark in the global and civilian markets worldwide, fits in precisely with our strategy to become a leader in the firearms industry and a key partner for the military, “said Lubomír Kovařík, Chairman of the Board of Directors and CEO of CZG. “We are proud to include in our portfolio the Colt, which has stood side by side with the US military for more than 175 years,” he added.

CZG pointed out that, thanks to the acquisition, it will acquire additional significant production capacities in the United States and Canada and expand its global customer network. Colt is a long-term supplier to the US military and, through its Canadian subsidiary, also the exclusive supplier of small arms to military units in Canada.

“We are very pleased with the prospect of this strategic merger. In the last five years, we have achieved a historic turnaround in Colt’s operating and financial results, and this important joint move with CZG will allow us to seize significant growth opportunities,” said Colt CEO Dennis Veilleux.

CZG is one of the leading European manufacturers of small arms for the armed forces, personal defense, hunting, sport shooting, and other civilian uses. It employs about 1,650 people in its operations in the Czech Republic, the USA, and Germany.