CZ Group Acquisition of Colt Finalized
Parent to CZ-USA and Dan Wesson, CZ Group has finalized an agreement to acquire Colt.
Less than four months after revealing a letter of intent to acquire Colt Holding LLC, Česká zbrojovka Group (CZG) has signed a definitive agreement to acquire the parent company of Colt Manufacturing Company and its Canadian subsidiary, Colt Canada Corporation, according to new documents. The deal is reportedly worth $220 million plus stocks.
“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,” said Lubomír Kovařík, president and chairman of CZG, regarding the announcement.
Under CZ Group, Colt will join a portfolio including four other firearm manufacturers in CZ, CZ-USA, Dan Wesson and Zbrojovka Brno (BRNO Rifles) who sold a combined 337,489 firearms globally in 2020.
“We are very pleased with the prospect of such a strategic combination,” said Colt President and CEO Dennis Veilleux. “We are excited to join forces with CZG which will be a powerful combination for both brands and for our customers.”
With facilities in West Hartford, Conn. and Kitchener, Ont., the acquisition of Colt will add significant production capacity for CZG operations in the U.S. and Canada. This is in addition to a planned CZ-USA factory, distribution center and new North American headquarters in Little Rock, Ark., though construction has yet to begin.
The transaction remains subject to regulatory approval but is anticipated to close in the second quarter of 2021. We’ll continue to follow the acquisition and its impact on Colt moving forward.
