Czech arms manufacturer Ceska Zbrojovka Group (CZG) buys American arms manufacturer Colt for $220 million in cash and 1 million new treasury shares.
The transaction may close with the approval of the competition authority in the second quarter of 2021. CZ will buy one hundred percent of the shares in Colt Holding, the parent company of the American company Colt’s Manufacturing Company and its Canadian stake.
The merger is of strategic importance to both parties.”
Said Lubomir Kovarik, CEO of CZG, adding that he is very proud to include the famous American brand in his company’s product portfolio. Dennis Filo, Colt’s CEO, says the merger opens excellent growth prospects for both parties.
The Colt brand became known around the world for a revolving pistol developed by founder Samuel Colt in the early 19th century. Looking back at its 175-year history, the company is also an official supplier to the US Army and Canadian Forces. Formed through the privatization of a former Czech arms manufacturer, CZ Group is one of the largest manufacturers of small arms in Europe, employing 1,650 people in the Czech Republic, Germany and the United States.
Its pistols are marketed under the brands CZ (Ceska Zbrojovka), Dan Wesson, Brno Rifles and 4M Systems. According to Czechoslovakia, the combined annual turnover of the two companies can reach about $ 500 million. Czechoslovakia’s sales reached 5 billion kroner ($235 million) in the first nine months of 2020, up 10 percent from the previous year, mainly due to increased demand for small arms in the United States.
(MTI)
News: Karen Blair/AFP
