Czech gunmaker CZG to acquire firearms manufacturer Colt
Česká zbrojovka Group (CZG), a Czech gunmaker, has agreed to acquire Colt Holding Company, the parent firm of US firearms manufacturer Colt’s Manufacturing and also its Canadian subsidiary Colt Canada for $220 million and 1,098,620 shares of its newly issued shares.
The deal also includes potential earnout consideration of up to 1,098,620 shares of newly issued CZG shares if defined EBITDA thresholds are met in years 2021 – 2023.
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.”
Czech gunmaker CZG to acquire firearms manufacturer Colt. Photo courtesy of CZG – Česká zbrojovka Group SE.
According to Lubomír Kovařík, the enlarged small arms manufacturer will have revenues of more than $500 million.
The deal gives CZG considerable production capacity in the US and Canada besides substantially growing its global customer base.
Colt caters to global military and law enforcement customers. It is also a long-term supplier to the US Army and, via its Canadian subsidiary supplies small arms to the Canadian military.
On the other hand, CZG along with its subsidiaries is a European producer of firearms that caters to military and law enforcement, hunting, personal defense, sport shooting, and other civilian purposes.
Dennis Veilleux – President and CEO of Colt said: “We are very pleased with the prospect of such a strategic combination. 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.”
The deal, which is subject to receipt of regulatory approval, is expected to be wrapped up in Q2 2021.