CZ Group announced its acquisition of Colt Holding Company back in February. Now, more than three months later, the deal has officially closed.
Here’s the announcement from Colt Holding Company . . .
Colt Holding Company LLC (“Colt”) announced today that CZG – Česká zbrojovka Group SE (“CZG” or “the Group”; PSE: CZG), having secured all necessary regulatory approvals from the U.S. and Canadian authorities, has successfully closed its acquisition of 100% of the equity interest in Colt, the parent company of the U.S. firearms manufacturer, Colt’s Manufacturing Company LLC as well as its Canadian subsidiary, Colt
CZG and Colt are confident that the merger will bring significant operational, commercial, and R&D synergies for the combined business, which generated pro-forma aggregated annual sales in excess of USD 570 million in 2020 and which has more than 2,000 employees in the Czech Republic, the United States, Canada and Germany.
“With this acquisition, we have created a strategic relationship between CZG and Colt, which will bring significant opportunities for the group. 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. We are confident that this combination will create value for our customers and shareholders alike and strengthen these iconic brands,” stated Lubomír Kovařík, Chairman and President of CZG. “This merger also confirms our commitment to the North American market which is an integral part of our growth strategy,” he added.
Thanks to this acquisition, CZG gains further production capacity and positions itself to become a leading firearms manufacturer and a key partner globally for military, law enforcement and commercial customers.
“Colt is pleased to join forces with CZG. We are proud of our heritage and believe that the strength of the combined businesses and the many synergies created by the merger will enable us to honor our roots while also securing the future of the Colt brand. We look forward to continuing to deliver our high- quality products while also investing in innovation and new product offerings in the near future. We believe in the successful connection of our corporate cultures, the proven track record of our teams and the complementary nature of the CZ and Colt brands,” stated Dennis Veilleux, President and CEO of Colt.
Now Move to a Gun Friendly State!!
How, in the middle of the largest gun buying frenzy ever, does a 185 year old American company get sold to a foreign concern? And yes, I know…this is an exceedingly rare example where the American company actually has a good new owner. But really? The Colt sale and breakup of Remington in 2020, at the historical height of gun and ammunition buying in this country is absolutely preposterous.
S&W was owned by the Brits for awhile…failed horribly. At Shot Show one year no one would stop at their booth.
CZ is much better than the Brits so I don’t see that happening.
Not good , I’m afraid one sanction on the foreign country would be the end.
Hang in there Ruger.
If we ever get to the point that the United States is imposing sanctions on the Czech Republic, we will have much larger problems than worrying about the viability of CZ and Colt firearms.
Well, if it were ever to happen it’d certainly be during the present leftist regime…
Systemic mismanagement. I’ve seen long running companies brought down by hubris and arrogance of managers who made flawed decisions that flied in the face of reality.
Decades of mismanagement over at Colt and Remington. It had nothing to do with the year. This was all coming to a head pre-covid. During the Trump slump everyone slowed down nearly to a stop.
Also Colt not willing to innovate. They didn’t come out with a free float Midland rail set up until the late 2010’s. To the point of outsourcing the majority of their components and to the point that FNH builds a better M4 M16 then the company that took over the original contract.
As for Remington they had tons of lawsuits didn’t focus on their common core long gun line such as the 870 1100 11-87 V3 700 . Instead they focused on tooling for an overpriced GI style 1911 that other companies made just as good for a lesser price. They also attempted to remake the R51 Pistol which was a total failure.
As a 45 year CT resident with many friends who worked at Colt, I can tell you the company has been circling the drain for 20 years.
A better question would be: How in the middle of a gun buying frenzy could Colt go bankrupt. Like they did in 2015.
Colt will benefit hugely from the financial stability and sound leadership provided by CZ. I’d have preferred that Ruger bought them. But Oh well.
Was the company circling the drain in a clockwise or anti-clockwise direction?
Inquiring minds want to know!!!
How did this happen to Colt? Managerial incompetence and neglect, pure and simple.
CZ would be wise to sack all management responsible for Colt’s slide into ignominy.
good question Madcapp. im thinking it could be from the the mindset of the top management they get get a good job then hire people under them to do there job for them and pass problems to somebody else and of course they deserve extremely high salaries and bonuses.
Not so preposterous when consider how badly run Colt & Remington were.
they need to move to FLORIDA
Unequivocally south of the Mason-Dixon line- if they expect to remain solvent.
South Carolina has it’s hand up..Pick Me!
Hopefully CZ will fix Colt..long row to hoe though.
If they do move to Florunderwater, that will be the warning buzzer for me to not purchase from them anymore.
There’s over 70 locations here in Florida with elevations more than 200 feet above sea level, and many more that are over 100 feet above sea level (highest is 345 feet). The central Florida highlands might eventually become an island- but if that happens we’ll all have much bigger things to worry about.
LOL Colt is over priced trash. Hopefully CZ can redeem them.
I envisage a lucrative future for Čoltská zbrojovka.
Somehow “Hříbě Krajta” doesn’t roll off the tongue.
“Diamantový” isn’t too bad.
I have an inner glimpse of hope that just maybe they will up the production of the SAA…
kakvo je vrime?
bit ce sniga!
A brilliant move by Colt. They see the handwriting on the wall as the US embraces communism and gun confiscation. Its likely that the communist Biden regime soon nationalizes the US arms makers so that they can shut them down and destroy the machinery and take the patents. By selling to CZ all Colts machinery, patents and Intellectual Property is in the hands of a foreign company based in a former Communist country than knows the evils of communism.
Colt has active patents? You mean the foreigners are gonna steal the All American 2000?
Or the Double Eagle?
I had 100% confidence in my MKll Series 90 Commander .45 that I carried open strongside while managing a gun shop in the mid/late 90’s. Would carry it today without hesitation if I still had it… was a boneheaded mistake getting rid of it.
Brilliant move. Go offshore to escape the clutches of Biden. Now bring back the CZ 550 with new tooling!
The press release alternates the description of the deal as a “merger” or an “acquisition.” There’s a whole lot of difference between the two.
This was a straight-up acquisition by CZ, a good gun company, of the assets of Colt, a poorly run mess of a gun company. If this was actually a merger, where Colt executives going forward would have some degree of control of the business, it would be a total disaster.
Colt’s management sunk the company. Now it’s up to CZ’s management to revive it. Any lingering Colt management presence would just set the company back again and probably sink CZ too.
Their wording appears to be accurate. Colt is retaining most of its management, but that will be as a subsidiary subservient to CZ. So if they don’t unbugger themselves and start production of Tiffany cufflinks soon, CZ will replace them with someone who will.
It seems like there is an epidemic of the executives of U.S. companies running their companies into the ground and foreign companies scarfing up the shattered remains.
And I never seem to hear about the reverse (U.S. Companies scarfing up horribly mismanaged foreign companies).
Is it just me or is there a problem in our nation with poor management which other countries do not seem to have?
Not really. Incompetents bullshitting their way to the top is a human problem, it happens everywhere. We just don’t hear about it unless something goes amazingly wrong.
Does anyone else remember the basic tenet of The Peter Principle? Rising to the level of one’s incompetence? It seems like many old line American companies, especially in manufacturing, have a monopoly on this idea.
US has long had to many MBAs and not enough REAL engineers grads (non computer “engineers”).
Know all about piling it high but no idea who it is made or works.
Precisely why we need a greater influx of polytechnical institutions to train our engineers
‘INTRODUCING The New Colt TR6920’
Upper and lower receivers, bolt carrier group, barrel, receiver extension manufactured in Turkey and assembled in the U.S.A. with American pride. GET yours SOON!
CZ will do a great job. Their products have always been known for good quality. Too bad an American company did not buy then though.
They will probably still manufacture them in the US rather than move overseas. Saves a lot of money and regulations.
I have two CZ products, I am very happy with both of them. Colt products, IMO, have been overpriced and underperforming for a long time.
Hopefully CZ will sort ’em out. While I would have liked to see an American outfit straightening them out, that’s not CZ’s fault.
I’m very excited about this. I’m a huge Colt fan, and them sucking ass makes me very sad. I have a lot of confidence in CZ.
Lower the prices on the revolvers, please.
By a lot.
Colt management was the reason the company failed and had to be bought out. What remains of management will be gone shortly if they can’t get the job done. Colt has been a basket case for years, I owned a couple of their 1911 pattern guns decades ago and they were complete crap. Hope CZ kicks them into line as well as moving them South out of slave territory.
Alabama, a very pro business and 2A state, would welcome them. Qualified workers, too. Ask Mazda/Toyota among many other companies.
I believe CZ’s current US headquarters is in Kansas City, KS. That would be a fine a location for Colt.
This Is a symptom of the demise of America and we have to get this company back into American and preferably Texans hands!! Colt guns were the tool that the Texas Rangers used to win the west.
It is a joke that this company is owned by foreigners. America is being overrun by gutless pussys ,this has to change!!
those are the best kind, tho.
Especially if they have nice boobs.
Give all of Colt’s assets to Dan Wesson and let them loose.
“CZG gains further production capacity” – obsolete equipment in occupied area? Next some econ dev idiot will sell them on the wonders of Chiraq as a central US distribution hub.
LOT OF GOOD COMMENTS , THANKS Y’ALL .
WELL , IS IT TIME FOR : COLT CZ , COLTnCZ , COLT PACKN CZ , BRAND ?
BE LUCKY TO BUY AMMO . MUCH LESS A NEW WEAPON .