CZG Group – Česká zbrojovka Group SE (CZG) has entered negotiations to acquire American firearms manufacturer Colt Holding Company LLC. The time limit for exclusivity to complete the talks has been extended to the end of January. Colt is the world’s leading manufacturer of firearms.
“Both parties have reached a general agreement on the basic commercial parameters of the transaction. Negotiations are now continuing with discussions on the technical parameters, regulatory approval requirements, and contractual terms of the transaction,” said CZG.
According to them, the conclusion of the final documentation is expected by the end of January, subject to the completion of negotiations, transaction documentation, and obtaining the necessary approvals of both parties’ competent authorities. “Once all the above conditions have been met, regulatory approval will be required before the transaction can be finally settled. However, despite significant progress in the negotiations, there is no guarantee that the transaction will be completed,” CZG warned.
The CZG Group – Česká zbrojovka Group SE reported record revenues of five billion crowns in the first three quarters of last year. Which was a year-on-year increase of 10.2 percent, mainly due to a higher number of weapons sold due to increased demand, especially in the United States. The holding recorded a year-on-year increase of 10.2 percent in the first nine months of 2020, also in the case of operating profit, which amounted to CZK 815.7 million. In 2019, the CZG holding reported sales of CZK 5.96 billion and a net profit of CZK 734 million.
The group manufactures small arms for the armed forces, personal defense, hunting, sport shooting, and other civilian uses. It sells them under the CZ (Česká zbrojovka) brand, which has a history of more than eighty years, and also under the CZ-USA, Dan Wesson, Brno Rifles, or 4M Systems brands. In addition to Česká zbrojovka, the group includes CZ-USA, 4M Systems, and CZ Export Praha. The holding also holds a minority stake in Spuhr i Dalby, a Swedish manufacturer of optical mounting solutions for weapons. The group employs approximately 1,650 people in the Czech Republic, the USA, and Germany.