Česká zbrojovka Group SE (CZG) officially completed its reported $220 million acquisition of Colt Holding Company. The deal reportedly concluded Monday, bring the legendary Colt’s brand under CZ control.
Colt Acquisition Completed
The merger promises significant operational, commercial and R&D synergies between the two iconic brands, according to CZ. Combined, CZ and Colt generated a reported $570 million in 2020. The massive numbers hint at new potential for the Colt brand in America. Additionally, the companies employ more than 2,000 workers in the U.S., Czech Republic, Canada and Germany.
“With this acquisition, we have created a strategic relationship between CZG and Colt, which will bring significant opportunities for the group. We will focus on continuing to provide high quality products to our customers in a seamless manner as we harness the many synergies generated by this acquisition. We are confident that this combination will create value for our customers and shareholders alike and strengthen these iconic brands,” stated Lubomir Kovarik, Chairman and President of CZG. “This merger also confirms our commitment to the North American market which is an integral part of our growth strategy.”
“Colt is pleased to join forces with CZG. We are proud of our heritage and believe that the strength of the combined businesses and the many synergies created by the merger will enable us to honor our roots while also securing the future of the Colt brand. …We believe in the successful connection of our corporate cultures, the proven track record of our teams and the complementary nature of the CZ and Colt brands,” said Dennis Veilleux, President and CEO of Colt.
The acquisition gives CZ greater production capacity. It also positions the company to go after a greater piece of the pie. The move potentially brings greater access to U.S. and global military, law enforcement and commercial markets. The move also positions CZ-Colt to potentially provide a greater challenge to SIG’s recent dominance. The acquisition puts the vaunted CZ 75 under the same roof as the iconic 1911 and AR-15. More importantly, it gives CZ manufacturing capacity within the United States. That alone should make the acquisition a pivotal move for CZ. It presumably gives the company a greater ability to go after U.S. federal contracts.