Prague, Czech Republic – The historic US gun maker Colt has been acquired by the Czech firearms company Ceska Zbrojovka.
Czech manufacturer Ceska Zbrojovka (CZG) announced it had reached an agreement and signed a $220 million deal to buy all the shares of the US gun maker Colt.
The deal still needs to be approved by regulators.
The Czech company, which currently employs over 1,600 people in the Czech Republic, Germany and the United States, expects the transaction to be fully completed in the second quarter of 2021.
“With this strategic move, CZG will acquire significant production capacity in the United States and Canada and substantially expand its global customers base”, the company said in a statement.
“The acquisition of Colt, an iconic brand and a benchmark for the military, law enforcement and commercial markets globally, fits perfectly in our strategy to become the leader in the firearms manufacturing industry and a key partner for the armed forces,” commented CZG president Lubomir Kovarik.
Founded in 1836 by inventor and entrepreneur Samuel Colt, the Connecticut-based gun maker played a key role in the 19th century in developing and popularising the first revolvers. The company has also become famous for its production of the Gatling machine gun, the Browning semi-automatic pistols or the M16 assault rifle.
The company has since become the exclusive supplier to the Canadian military and a key supplier of the US and other armed forces around the world.
The deal with its Czech rival CZG comes five years after Colt emerged from bankruptcy.
“Having completed a historic turn-around of the operations and financial performance at Colt over the past five years, this important next step with CZG positions the company to take advantage of significant growth opportunities,” Colt CEO Dennis Veilleux said.
Main photo credit: Official Facebook page of Colt