Czech company CZG Group - Česká zbrojovka Group SE (CZG) has successfully completed the acquisition of the American weapons manufacturer Colt Holding Company LLC (Colt). This was preceded by obtaining the necessary regulatory approvals from the US and Canadian authorities. The company announced it on Monday.
The previously published terms and conditions stipulate that CZG will acquire a 100% stake in Colt for US$ 220 million (CZK 4.7 billion) in cash and for 1,098,620 newly issued common shares in CZG.
Colt is the parent company of the American arms manufacturer Colt’s Manufacturing Company LLC as well as its Canadian subsidiary Colt Canada Corporation.
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.
Holding CZG - Česká zbrojovka Group SE is a major European manufacturer of small arms. Last year, it reported revenues of 6.8 billion crowns (US$ 230 mil). They were 14.6 percent higher year-on-year. Compared to 2019, the operating profit increased by 11.9 percent to more than 1.056 billion crowns (US$ 50 mil). The holding sold 467,463 weapons last year, an increase of 24.9 percent compared to the previous year.
The CZG holding includes the Česká zbrojovka plant in Uherský Brod, as well as companies such as CZ-USA, Zbrojovka Brno, 4M Systems and CZ Export Prague. Following the acquisition of Colt, the group has more than 2,000 employees in the Czech Republic, the USA, Canada and Germany.
Source: Czech Press Agency, delivered by CzechTrade team Calgary