CZG announces acquisition of Colt
The Colt Combat Elite Government (45ACP). (Photo: Colt)
CZG has announced the closing of its acquisition of Colt.
Česká zbrojovka Group (CZG) has announced that it has successfully closed on its acquisition of 100% of the equity interest in Colt Holding Company LLC for $220million in cash and stock.
Colt Holding Company is the parent company of the US firearms manufacturer, Colt’s Manufacturing Company, as well as its Canadian subsidiary, Colt Canada Corporation.
CZG and Colt are confident that the merger will bring significant operational, commercial and R&D synergies for the combined business.
The combined businesses generated Pro-forma aggregated annual sales in excess of $570million and have more than 2,000 employees in the Czech Republic, the United States, Canada and Germany.
The acquisition occurred following the lengthy process of securing all necessary regulatory approvals from the Canadian and the US authorities, which is traditionally reluctant to allow foreign companies to purchase US defence firms.
Colt recently found itself in a position of financial difficulty when the organisation filed for bankruptcy in June 2015.
The contributing factors to the bankruptcy included: bad management, product portfolio and imprudent financial engineering.
Colt officially exited bankruptcy, with its emergence from Chapter 11 restructuring, in January 2016.
This acquisition reflects the renewed confidence in Colt’s financial stability and quality of its products.
More from Defence Notes
-
![US speeds up B61-13 nuclear bomb production as programme moves further ahead of schedule]()
US speeds up B61-13 nuclear bomb production as programme moves further ahead of schedule
The US government plans to accelerate production even further after achieving key B61-13 milestones months ahead of schedule, as the programme advances amid growing US-China strategic competition.
-
![Canada’s C$2 billion ACSV deal reinforces new defence industrial strategy as allies align]()
Canada’s C$2 billion ACSV deal reinforces new defence industrial strategy as allies align
General Dynamics Land Systems-Canada is the country’s first strategic partner under the Defence Industrial Strategy’s Strategic Partnership Framework, an effort to provide companies with confidence to invest and boost the defence labour force.
-
![New UK armed forces minister frames High North defence as vital to “homeland security”]()
New UK armed forces minister frames High North defence as vital to “homeland security”
The UK’s Minister for the Armed Forces Louise Sandher-Jones made her first appearance in the role before the House of Commons Defence Committee this week to highlight efforts to improve capability in the High North.
-
![Canada seeks to strengthen industrial ties with the US on classified programmes]()
Canada seeks to strengthen industrial ties with the US on classified programmes
Ottawa explores expanding defence-industrial cooperation with Washington into sensitive programmes, an approach that could reshape NORAD modernisation, strengthen North American supply chains and create new opportunities for defence contractors.
