In a major announcement, we’ve learned that Česká zbrojovka Group SE (CZG) has acquired Colt for a massive $220 million. CZG is the parent company to CZ, CZ-USA, Dan Wesson, Brno and more. Now the CZ Colt deal gives CZG command of one America’s most iconic firearm brands.
The CZ Colt Acquisition
The deal gives CZG 100-percent equity in Colt Holding Company LLC, or Colt. Commenting on today’s announcement, Lubomír Kovařík, President and Chairman of CZG, said:
“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,” Kovařík continued. “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.”
“We are very pleased with the prospect of such a strategic combination,” said Dennis Veilleux, President and CEO, 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.”
CZ Gains U.S. Foothold
The company will finance the acquisition through existing cash resources and other proceeds, according to CZG. The company also expects to close the deal in the second quarter, 2021.
The deal gives CZG dramatically increased production capacity in the U.S. and Canada. It also provides CZG a traditional supplier to the U.S. military and law enforcement customers. For even more info, please visit cz-usa.com.