Česká zbrojovka Group SE (CZG) has successfully completed the acquisition of the American gunmaker Colt Holding Company LLC (Colt). This was preceded by obtaining the necessary regulatory approvals from the American and Canadian authorities, the company announced in a press release today. The previously announced terms and conditions stipulate that CZG will acquire a 100% stake in Colt for $220 million (CZK 4.7 billion) in cash and for 1,098,620 newly issued ordinary shares in CZG.
Colt is the parent company of the American arms manufacturer Colt’s Manufacturing Company LLC and also its Canadian subsidiary Colt Canada Corporation.
“With this acquisition, we have created a strategic alliance between CZG and Colt, which will bring a number of significant opportunities to the group. We will focus on providing high quality products to our customers by leveraging the synergies gained through this acquisition. will strengthen our renowned brands, “said Lubomír Kovařík, Chairman of the Board of Directors and President of CZG. “This merger also confirms our connection to the North American market, which is an integral part of our growth strategy,” added Kovařík.
CZG pointed out that, thanks to the acquisition, it will acquire other significant production capacities in the USA 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 pleased to join forces with CZG. We are proud of our tradition and believe that the combined strengths of our companies and the many synergies that the merger will create will allow us to maintain our roots while securing the future of the Colt brand. We believe in the successful connection of our corporate cultures, the experience of both teams and the complementarity of the CZ and Colt brands, “said Dennis Veilleux, President and CEO of Colt.
Holding CZG – Česká zbrojovka Group SE is a major European manufacturer of small arms, last year it reported revenues of 6.8 billion crowns. They were 14.6 percent higher year-on-year. Compared to 2019, the operating profit increased by 11.9 percent to more than 1.056 billion crowns. The holding sold 467,463 weapons last year, an increase of 24.9 percent compared to the previous year.
CZG includes the Česká zbrojovka plant from Uherský Brod, as well as companies such as CZ-USA, Zbrojovka Brno, 4M Systems and CZ Export Prague. Following the acquisition of Colt, the group has more than 2,000 employees in the Czech Republic, the USA, Canada and Germany.