Explore The NRA Universe Of Websites

APPEARS IN News Guns

CZ Group Purchases Colt

CZ Group Purchases Colt

CZ Group (CZG) signed a definitive agreement on Feb. 11 to acquire 100-percent stake in Colt Holding Company—which includes legendary gunmaker Colt’s Manufacturing and Colt Canada—for $220 million in cash and 1,098,620 shares of CZG common stock. Value of the stock portion of the transaction, as of Friday, stood at roughly $18.65 million.

The acquisition is subject to regulatory approval, but officials anticipate the deal will officially close sometime in the second quarter of this year. The sale also includes a stipulation that meeting specific 2021 to 2023 financial goals result in the transfer of another 1.099 million shares of CZG stock.

“This merger is a strategic step for both companies,” Lubomír Kovařík, president and chairman of CZG, said. “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 500 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.”

“We are very pleased with the prospect of such a strategic combination,” said Dennis Veilleux, president and CEO of Colt. “Having completed a historic turn-around 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.”

Colt, which successfully emerged from bankruptcy protection in 2016, has been a supplier to the U.S. Army throughout most of its 175 years history. Its Canadian subsidiary, Colt Canada, is currently the designated exclusive supplier of small arms to that nation’s military.

Comments On This Article

More Like This From Around The NRA