Czech-based arms manufacturer Ceska Zbrojovka (CZG) has reached an agreement to buy Colt, the arms manufacturer that has served the United States since the 19th century.
In exchange for $220 million in cash payments and stocks, CZG will incorporate the US firm, including Colt’s Canadian unit. The sale is expected to be completed in the second quarter of this year. At the end of the process, CZG is expected to significantly expand its global customer base by achieving significant production capacity in the United States and Canada.
The Czech CZ Group, seen as one of Europe’s largest pistol manufacturers, emerged with the privatization of a state-owned firm.
Colt has been working in the U.S. arms industry since the 19th century. The firm also sells weapons to the forces of the United States and other countries.
CZ will have revenues exceeding $500 million following the deal.