CZ Group Acquires Colt

The agreement calls for upfront cash of $220 million and newly issued CZG common stock.

by posted on February 12, 2021
CZG Acquires Colt
czg.cz image

One of the most iconic names in American firearms is about to be added to the portfolio of brands that now fall under Czech Republic-based CZ Group. The company has signed an agreement to acquire 100 percent of the outstanding equity in Colt Holding Company LLC, the parent company of Colt’s Manufacturing Company LLC, as well as its Canadian subsidiary, Colt Canada Corporation.

According to reports, terms of the agreement call for an upfront cash consideration of $220 million and the issuance of 1,098,620 shares of newly issued CZG common stock, as well as the potential for issuance of future shares of CZG common stock.

“This merger is a strategic step for both companies,” said Lubomír Kovařík, president and chairman of CZG. “The acquisition of Colt, an iconic brand and a benchmark for the military, law enforcement and commercial markets globally, fits perfectly in our strategy to become the leader in the firearms manufacturing industry and a key partner for the armed forces. We are proud to include Colt, which has stood shoulder-to-shoulder with the U.S. Army for over 175 years, in our portfolio. We believe in the successful connection of our corporate cultures, the proven track record of the current management team and the complementary nature of the CZ and Colt brands. The combined group will have revenues in excess of USD 600 million and presents a real small arms powerhouse. The experience of CZ and Colt management will further strengthen both brands and ensure CZ and Colt continue to deliver top quality products and solutions to all our customers.”

CZG will acquire significant production capacity in the United States and Canada and substantially expand its global customer base. Colt is a traditional supplier to global military and law enforcement customers. Among others, Colt is a long-term supplier to the U.S. Army (a relationship that dates back more than 175 years) and, through its Canadian subsidiary, Colt is a designated exclusive supplier of small arms to the Canadian military.

“We are very pleased with the prospect of such a strategic combination,” said Dennis Veilleux, President and CEO of Colt. “Having completed a historic turnaround of the operations and financial performance at Colt over the past five years, this important next step with CZG positions the company to take advantage of significant growth opportunities. We are excited to join forces with CZG which will be a powerful combination for both brands and for our customers.”

The acquisition is to be financed from the company’s existing cash resources, including recent IPO proceeds, and from the contemplated bond issuance. The transaction is subject to regulatory approval but is anticipated to close in the second quarter of 2021.

To learn more, visit czg.cz or cz-usa.com.

Image courtesy czg.cz

Latest

Rao Gun Range Terminology Firing Line Lead
Rao Gun Range Terminology Firing Line Lead

Berms, Backstops, Baffles—and Other Gun Range Terminology

Beyond range commands, knowing the correct terminology and names of the different areas of the gun range is crucial to having a fun day at the range.

Rock Island Armory AL22 Revolver Review

There’s a new revolver on the block, and it’s a pleasure to plink with!

The SA-35: Springfield Armory Revives the Iconic Hi Power

If you are one of the many who regretted not adding a Browning Hi Power to your collection before it was discontinued a few years ago, you now have another opportunity. 

5 Reasons to Check out Mossberg's New Optics Ready MC2sc Micro-Nine Pistol

Mossberg blends the features of their MC pistol series with an optics ready slide to make a Micro Nine pistol ideal for daily carry. 

Mossberg's New 590S Pump-Action 12-ga. Shotguns

This series of defensive shotguns reliably feed mini 12-ga. shells for increased ammunition capacity and reduced recoil.

NRA Releases To Keep & Bear Freedom: 150 Years of the National Rifle Association

Celebrating its 150th Anniversary, NRA Releases To Keep & Bear Freedom: 150 Years of the National Rifle Association

Women's Interests



Get the best of NRA Women delivered to your inbox.