CZ buying Colt

[Ohiosam]

Apparently struggling since emerging from bankruptcy in 2016, Colt has likely drawn the eye of potential buyers ever since. Now, thanks to CZ (Česká zbrojovka) parent company CZ Group’s public filings, we know it is attempting to purchase all of Colt’s Manufacturing Company‘s assets and is well along in this process.
Translated from an article in major German newspaper, Die Welt:

…CZ is planning the complete takeover of the world-famous US company Colt – including its Canadian subsidiary. To this end, after research by WELT AM SONNTAG, a declaration of intent was signed. A spokeswoman for CZ Ceská Zbrojovka confirmed the plan in principle to the newspaper.

Since CZ Group became a public company in mid-2020, listed on the Prague Stock Exchange, we can see in the company’s own corporate filings that it’s deep in due diligence and negotiations for a potential purchase of Colt. In fact, the parties expect to wrap up the deal this month (bold text below added):

…further to our previous disclosure with respect to the Letter of Intent dated November 5, 2020 for the acquisition of 100% of the outstanding equity interest in Colt Holding Company LLC (“Colt”), CZG hereby informs that it has agreed with Colt on the extension of the exclusivity period to complete its due diligence until the end of January 2021.
The parties have reached an agreement in principle on key commercial parameters of the transaction and they continue discussing the technical parameters, regulatory review requirements, and legal terms and conditions of the transaction.
Execution of the definitive documentation for the transaction is estimated to take place by the end of January 2021, subject to completing the negotiations, finalizing the transaction documentation, and obtaining necessary approvals of the relevant stakeholders.

TTAG reached out for comment from the principals, but both parties referred us to the public filing linked and quoted above. We’ll bring you more details as we get them.

BREAKING: CZ In Late Stage Talks to Acquire Colt - The Truth About Guns

&#9664Previous Post Next Post▶ Apparently struggling since emerging from bankruptcy in 2016, Colt has likely drawn the eye of potential buyers ever since. Now, thanks to CZ (Česká zbrojovka) parent company CZ Group’s public filings, we know it is attempting to purchase all of Colt’s...

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[tracker 6]

Sad,but it beats ending up like Remington .

 

[hickslawns]

Have always been a Colt fan. Hate to see them German owned but maybe that's what Colt needs to keep the name alive.

 

[Ohiosam]

Have always been a Colt fan. Hate to see them German owned but maybe that's what Colt needs to keep the name alive

CZ is Czech. They make good quality firearms. Colt has been very poorly run for decades, ignored the civilian market for the military contract but lost them to Beretta and FN. Had a very long strike, like 5 years, quality suffered. Been in financial trouble for years. At this point nothing could get worse and CZ has potential to really improve things.

 

[Jackalope]

Interesting. Another Iconic American gun manufacturer bites he dust in a time of unprecedented gun sales.

 

[Ohiosam]

Interesting. Another Iconic American gun manufacturer bites he dust in a time of unprecedented gun sales.

Poorly managed companies that weren’t in a position to take advantage of the opportunities. On the other hand CZ will gain US manufacturing capacity if Biden tries to limit imports.