The Czech CZG buys US Colt Holding Company

CZG will pay $220 million for 1,098,620 shares

editor: REMIX NEWS
author: iDNES.cz, Czech News Agency

Česká zbrojovka Group (CZG) has signed an agreement to buy a 100 percent stake in the US Colt Holding Company. CZG will pay $220 million and transfer 1,098,620 of newly issued shares.

Colt Holding Company LLC is the parent company of the US arms manufacturer Colt’s Manufacturing Company, LLC. The transaction has yet to be approved by regulatory authorities.

“This merger is a strategic step for both companies. The acquisition of the Colt company, an iconic brand and a staple in the armed forces and civilian markets worldwide, fits perfectly into our strategy to become a leader in the firearms industry and a key partner for the armed forces,” said Lubomír Kovařík, chairman of the Board and CEO of CZG.

“We are proud to include the Colt company in our portfolio as the company has stood side by side with the US military for more than 175 years,” he added.

CZG pointed out that, thanks to the acquisition, it will acquire significant production capacities in the United States and Canada and expand its global customer network. Colt is a long-term supplier to the US military and, through its Canadian subsidiary, also the exclusive supplier of small arms to military units in Canada.

“We are very pleased with the prospect of this strategic connection. In the last five years, we have achieved a historic turnover in Colt’s operating and financial results, and this important step with CZG will allow us to take advantage of significant opportunities for growth,” said Dennis Veilleux, the CEO for Colt Holding Company.

CZG is one of the leading European manufacturers of small arms for the armed forces, personal defense, hunting, sport shooting, and other civilian uses. It employs about 1,650 people in the Czech Republic, the United States and Germany.


Title image: M4 Colt rifles are produced at the Colt Defense Plant in Hartford, Conn., Thursday, March 27, 2008. The carbine rifle is used by tens of thousands of U.S. troops in Iraq and Afghanistan. For well over a decade, the military has relied on Colt Defense of Hartford, Conn. to make the M4 rifles. (AP Photo/Richard Lardner)

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