CZ Acquires Colt’s Manufacturing Co. LLC and Colt Canada Corp.
Colt Manufacturing LLC, the legendary American gun-maker, is being sold to CZ, the Czech firearms manufacturer. Česká zbrojovka Group SE (“CZG”) has signed an agreement to acquire 100% of the outstanding equity in Colt Holding Company LLC (“Colt”), the parent of U.S. firearms manufacturer Colt’s Manufacturing Company LLC as well as its Canadian subsidiary, Colt Canada Corporation.
CZG will acquire a 100% stake in Colt for $220 million in cash plus 1,098,620 shares of newly-issued CZG common stock. The deal will close in Q2 2021. After the merger, the combined group will become a global gun-making powerhouse with revenues in excess of $600 million USD.
CZG President/Chairman Lubomír Kovařík stated: “This merger is a strategic step for both companies. 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.”
Dennis Veilleux, President/CEO of Colt, agreed: 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.”
With this strategic move, 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. Colt is a long-term supplier to the U.S. Army and, through its Canadian subsidiary, Colt is a designated exclusive supplier of AR-type small arms to the Canadian military.
About Colt’s Manufacturing Company LLC
Colt’s Manufacturing Company, LLC (formerly Colt’s Patent Firearms Manufacturing Company) is an American firearms manufacturer founded in 1855 by Samuel Colt. It is the successor corporation to Samuel Colt’s earlier firearms-making efforts started in 1836. For over 175 years, Colt Mfg. has supplied civilian, military and law enforcement customers in the U.S. and throughout the world.
Colt is a supplier to the U.S. military, a primary supplier to the Canadian military* and it also supplies its products to other armed forces around the world. Colt firearms enjoy a reputation throughout the world for accuracy and quality. Colt pistols are carried by military and law enforcement personnel in numerous countries, and Colt handguns are popular with private gunowners throughout the world. In 2020 Colt released a new version of its vaunted .357 Magnum Python Revolver.
About CZG – Česká zbrojovka Group SE
Česká zbrojovka Group SE (CZG), together with its subsidiaries, is one of the leading European producers of firearms for military and law enforcement, personal defense, hunting, sport shooting and other civilian use. CZG markets and sells its products mainly under the CZ (Česká zbrojovka), CZ-USA, Dan Wesson, Brno Rifles and 4M Systems brands. CZG’s subsidiaries include Česká zbrojovka, CZ-USA, 4M Systems and CZ Export Praha. CZG owns a minority stake in Spuhr i Dalby, a Swedish manufacturer of optical mounting solutions for weapons.
Headquartered in the Czech Republic, CZG has production facilities in the Czech Republic and in the USA. CZG employs around 1,650 people in the Czech Republic, the USA and Germany.
*Colt Canada is an exclusive supplier of primary issue rifles for the Canadian military. Cadex and PGW Defense supply some bolt-action and sniper-type rifles.
