Czech arms company Ceska zbrojovka Group has acquired the American Colt Defense.
"The acquisition of Colt, an iconic global brand, fits perfectly into our strategy to become a leader in firearms manufacturing and a key partner for the armed forces. We are proud to include the Colt, which has stood shoulder to shoulder with the US Army for more than 175 years, in our portfolio, " said CZG Chairman Lubomir Kovarzyk.
For 100 percent of the shares of Colt and its subsidiary in Canada, the Czech holding company will pay $ 220 million. If the combined company's profit figures in 2021-2023 reach the planned targets (more than $ 500 million per year), then more than a million shares of CZG will also be transferred to the former owners. They will receive the same amount of shares after the transaction is closed. It is expected in the second quarter of 2021.
The Colt gun brand is one of the symbols of the United States. It is enough to recall the American proverb "The Lord God created men, President Lincoln gave them freedom, and Colonel Colt made them equal." In 1835, Samuel Colt invented the capsule revolver, which quickly replaced other systems on the gun market. Over the 179 years of its existence, the company has produced more than 30 million small arms: revolvers, automatic rifles and accessories. In 2015, the company declared bankruptcy.
Ceska zbrojovka Group has existed since 1936, when one of the most powerful weapons factories in the world was built in the city of Ugerski Brod. Now the company is engaged in the production of service, hunting and sports weapons, being one of the five largest manufacturers. Earlier, CZG acquired another well-known company from the United States, Dan Wesson Firearms.
Anton Valagin
