The Czech-based parent company of CZ has completed the purchase of Connecticut's Colt after securing regulatory approvals in Canada and the U.S.
The final acquisition, announced on Monday, comes three months after Guns.com covered the story that CZG aimed to pick up a 100-percent stake in the historic Colt’s Manufacturing Company as well as its Canadian subsidiary, the Colt Canada Corporation. The sale reportedly involved $220 million cash upfront and the issue of just over 1 million shares of common stock.
The combined companies generated annual sales in excess of $570 million last year and have more than 2,000 employees in Canada, the Czech Republic, Germany, and the U.S. With the acquisition, CZG gains increased production capacity, and company officials see the move as bringing aboard a key partner for military, law enforcement, and commercial customers.
“With this acquisition, we have created a strategic relationship between CZG and Colt, which will bring significant opportunities for the group," said Lubomir Kovarik, chairman and president of CZG. "We will focus on continuing to provide high-quality products to our customers in a seamless manner as we harness the many synergies generated by this acquisition."
Meanwhile, Dennis Veilleux, president and CEO of Colt, said they "look forward to continuing to deliver our high-quality products while also investing in innovation and new product offerings in the near future."