BREAKING: CZ In Late Stage Talks to Acquire Colt
JWT for TTAG
Colt has apparently been struggling since stepping out of bankruptcy in 2016 and has likely drawn the attention of potential buyers since then. Thanks to the public records of the CZ Group’s parent company CZ (Česká zbrojovka), we now know that it is trying to acquire all of the Colt Manufacturing Company’s assets and we are well on the way in the process.
Translated from an article in the major German newspaper Die Welt:
… CZ plans the complete takeover of the world-famous US company Colt – including its Canadian subsidiary. For this purpose, after research by WELT AM SONNTAG, a declaration of intent was signed. A spokeswoman for CZ Ceská Zbrojovka confirmed the plan to the newspaper in principle.
With the CZ Group becoming a publicly traded company listed on the Prague Stock Exchange in mid-2020, we can see in the company’s proprietary records that the due diligence and negotiations over a possible purchase of Colt are profound. In fact, the parties expect to close the deal this month (bold text added below):
… Following our prior disclosure regarding the letter of intent dated November 5, 2020 to acquire 100% of the outstanding interests in Colt Holding Company LLC (“Colt”), CZG hereby announces that it has entered into an agreement with Colt to extend the Exclusivity period to complete the due diligence by the end of January 2021.
The parties have in principle reached an agreement on the main commercial parameters of the transaction and continue to discuss the technical parameters, regulatory review requirements and legal terms of the transaction.
The execution of the final documentation for the transaction is expected to take place in late January 2021subject to the conclusion of negotiations, the completion of the transaction documentation and the obtaining of the necessary approvals from the relevant stakeholders.
TTAG tried to get a statement from the client, but both parties referred us to the public submission linked and cited above. We will bring you more details as soon as we receive them.