American Rifleman | CZ Group To Acquire Colt
Today CZ Group signed an agreement to acquire 100 percent of Colt Holding Company, LLC, the parent company of Colt’s Manufacturing and Colt Canada, for an upfront payment of $ 220 million. The agreement also mentioned the issuance of 1,098,620 shares of newly issued common shares of CZ Group.
“This merger is a strategic step for both companies,” said Lubomír Kovařík, President and Chairman of the CZ Group’s strategy to become a leader in the arms industry and an important partner in the armed forces. We are proud to add Colt, who has worked closely with the US Army for over 175 years, to our portfolio. We believe in the successful marriage of our corporate cultures, the proven track record of the current management team and the complementarity of the CZ and Colt brands. The combined group will have sales of more than $ 600 million and present a real small arms powerhouse. The experience of CZ and Colt management will further strengthen both brands and ensure that CZ and Colt continue to deliver the highest quality products and solutions to all of our customers. “
CZ plans to use the company’s existing cash to fund the Colt acquisition, including recent IPO proceeds and a planned bond issue. The transaction is still subject to regulatory approval, but the Group expects to close in the second quarter of 2021.
“We are very pleased with the prospect of such a strategic combination,” said Dennis Veilleux, President and CEO of Colt Moving with CZG positions the company to capitalize on significant growth opportunities. We are excited to partner with CZG, a powerful combination for both brands and for our customers. “