By AWR HAWKINS
Colt Holding Company (Colt) and subsidiary Colt Canada Corporation are being acquired by Česká zbrojovka Group (CZG), owners of CZ-USA.
A Colt press releases says “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.”
Lubomír Kovařík, President and Chairman of CZG, commented on the February 11, 2021, announcement, saying:
This merger is a strategic step for both companies. 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. We are proud to include Colt, which has stood shoulder-to-shoulder with the U.S. Army for over 175 years, in our portfolio. We believe in the successful connection of our corporate cultures, the proven track record of the current management team and the complementary nature of the CZ and Colt brands. The combined group will have revenues in excess of USD 500 million and presents a real small arms powerhouse. The experience of CZ and Colt management will further strengthen both brands and ensure CZ and Colt continue to deliver top quality products and solutions to all our customers.
Colt Senior Vice President Paul Spitale spoke to Breitbart News about the merger and emphasized this was a great move for Colt, as it renders them debt-free at a time when there are “huge opportunities” for the company to expand its reach into the commercial market.
He said, “Here’s we look at it. Here is Colt, coming out of a period of recovery and stabilization, which was time we spent preparing for this moment of growth and now we’re here.” He pointed out that Colt “had north of $400 million in debt in 2015,” all of which will be gone once the merger with CZG is approved.
Spitale noted there were other companies interested in investing in Colt, but he indicated that CZG was a perfect fit. He explained that CZG was “very complimentary” about Colt’s management structure and “look to support it,” rather than revamp or replace it. This means Colt employees retain their jobs and Colt firearms continue to be built in the USA.
Spitale emphasized the “made in USA” aspect of Colt more than once, stressing that that was a crucial aspect of the merger. Colt will have to go through “a number of regulatory approvals” as a subsidiary of CZG, and getting those approvals could take as long as mid-summer 2021, but Spitale does not foresee any problems in securing them.