Česká Zbrojovka Group (CZG) announced on May 24 that it has secured all necessary regulatory approval from the U.S. and Canadian authorities, and successfully closed acquisition of 100 percent of the equity interest in Colt Holding Company (Colt)—the parent firm of Colt’s Manufacturing Company and Colt Canada Corporation. News of the purchase surfaced in February.
The merger brings significant operational, commercial and research and development synergies for the combined business, which generated pro-forma aggregated annual sales in excess of $570 million in 2020. CZG ‘s total employee count comes to 2,000 after the acquisition, with staff distributed across the Czech Republic, United States, Canada and Germany.
“With this acquisition, we have created a strategic relationship between CZG and Colt, which will bring significant opportunities for the group,” said Lubomir Kovarik, chairman and president of CZG. “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. This merger also confirms our commitment to the North American market, which is an integral part of our growth strategy.”
The acquisition improves CZG’s production capacity and positions itself to become a leading firearm manufacturer and a key global supplier for military, law enforcement and commercial customers. The holding company is headquartered in Prague, Czech Republic, and its stable of gun manufacturing firms also includes CZ, CZ-USA and Dan Wesson Firearms.
“Colt is pleased to join forces with CZG,” said Dennis Veilleux, president and CEO of Colt. “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 look forward to continuing to deliver our high-quality products while also investing in innovation and new product offerings in the near future. 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.”
