The Czech arms factory Ceska Zbrojovka Group (CZG) permanently controlled the American arms factory Colt.
Ceské Zbrojovka Group bought one hundred percent of the shares of Colt’s Manufacturing Company in the United States and its parent company in Canada, Colt Holding, for $220 million in cash and 1.1 million new treasury shares. The statement said the Czech company had received approvals from relevant US, Canadian and Czech agencies in recent months.
With this acquisition, a strategic alliance was created between CZG and Colt, which created a number of new and important opportunities for us. I am sure this work will be very beneficial for CZG.”
– Quote the statement made by Lubomir Kovarik, President of the CZG.
Through this transaction, CZG gained new production capabilities and orders in the United States and Canada. The armed forces of both countries have been using Colt-branded pistols for a long time. “We are very happy to join forces, which opens up great opportunities for growth for both parties.” said Dennis Filo, Colt President and CEO.
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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 175 years of history, the company is also an official supplier to the US Army and Canadian Forces.
The CZG group, formed through the privatization of a former Czech arms manufacturer based in Uhersky Brod, southern Moravia, is one of the largest manufacturers of small arms in Europe. Its turnover last year was 6.8 billion crowns, a year-on-year increase of 14.6 percent. The Czech company sold a total of 467,463 small arms last year, an increase of 24.9 percent. After acquiring Colt in the United States, CZG has more than 2,000 employees in the Czech Republic, the United States, Germany and Canada.
(MTI)
Netbook: Fotostand / K. Schmitt / AFP
