Czech firearms manufacturer, CZG – Česká zbrojovka Group SE has announced the acquisition U.S. based small arms firm, Colt Holding Company LLC (“Colt”), as well as its Canadian subsidiary, Colt Canada Corporation.
CZG shall acquire a 100% stake in Colt for upfront cash consideration of $220 million and the issuance of 1,098,620 shares of newly issued CZG common stock. The agreement also provides for potential earnout consideration of up to 1,098,620 shares of newly issued CZG common stock if defined EBITDA thresholds are achieved in years 2021 - 2023.
“The combined group will have revenues in excess of USD 500 million and presents a real small arms powerhouse,” Lubomír Kovařík, President and Chairman of CZG, said.
The acquisition is to be financed from the Company’s existing cash resources, including recent IPO proceeds, and from the contemplated bond issuance. The transaction is subject to regulatory approval but is anticipated to close in the second quarter of 2021.
Following the purchase, CZG will acquire significant production capacity in the United States and Canada and substantially expand its global customer base. Colt is a traditional supplier to global military and law enforcement customers. Among others, Colt is a long-term supplier to the U.S. Army (which relationship dates back over 175 years) and, through its Canadian subsidiary, Colt a designated exclusive supplier of small arms to the Canadian military.
The management of CZG will organize a conference call for media to discuss this topic (more details to be announced in due course), a press release said.
CZG – Česká zbrojovka Group (CZG), together with its subsidiaries, is one of the leading European producers of firearms for military and law enforcement, personal defense, hunting, sport shooting and other civilian use. CZG markets and sells its products mainly under the CZ (Česká zbrojovka), CZ-USA, Dan Wesson, Brno Rifles and 4M Systems brands. CZG’s subsidiaries include Česká zbrojovka, CZ-USA, 4M Systems and CZ Export Praha.
CZG owns a minority stake in Spuhr i Dalby, a Swedish manufacturer of optical mounting solutions for weapons.CZG is headquartered in the Czech Republic. It has production facilities in the Czech Republic and in the United States and employs around 1,650 people in the Czech Republic, the United States and Germany.About Colt