The Czech arms manufacturer Ceska Zbrojovka Group (CZG) in the Czech Republic has permanently taken control of the US arms factory Colt, the Czech arms manufacturer announced in a statement on Monday. Ceské Zbrojovka Group bought one hundred percent of the shares of Colt’s Manufacturing Company in the United States and its parent company in Canada, Colt Holding, for $220 million in cash and 1.1 million new treasury shares.
The statement said the Czech company had received approvals from relevant US, Canadian and Czech agencies in recent months. The statement quoted Lubomír Kovarík, President of CZG: “This acquisition has created a strategic alliance between CZG and Colt, which will create a number of new and important opportunities for us. I am confident that this transaction will be very beneficial for CZG.” According to him.
Through this transaction, CZG gained new production capabilities and orders in the United States and Canada. The armed forces of both countries have been using Colt-branded pistols for a long time. “We are very pleased to join forces, which opens up significant growth opportunities for both parties,” said Dennis Filiu, Colt President and CEO.
The Colt brand became known worldwide for its revolving pistol developed by founder Samuel Colt in the early 19th century. Looking back at its 175-year history, the company is also an official supplier to the US Army and Canadian Forces.
The CZG group, formed through the privatization of a former Czech arms manufacturer based in Uhersky Brod, southern Moravia, is one of the largest manufacturers of small arms in Europe. Its sales volume last year was 6.8 billion crowns, up 14.6 percent year on year. The Czech company sold a total of 467,463 small arms last year, an increase of 24.9 percent. After acquiring Colt in the United States, CZG has more than 2,000 employees in the Czech Republic, the United States, Germany and Canada.