Czech firearm company Ceska Zbrojovka Group (CZG) has closed its acquisition of Colt.
CZG announced in February that it was acquiring 100 percent of parent company Colt, the Colt Manufacturing Company, and Colt Canada Corporation. On Monday, May 24, CZG secured regulatory approval from U.S. and Canadian authorities to close the transaction.
“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,” CZG chairman and president Lubomír Kovařík said in a statement. “This merger also confirms our commitment to the North American market which is an integral part of our growth strategy,” he added.
This transaction was worth $220 million in cash and more than one million shares of stock, according to CZG.
CZG’s decision to acquire Colt has had an adverse impact on an Arkansas economic development deal. In April 2019, CZ-USA announced plans to invest up to $90 million in Arkansas by building its North American headquarters and a manufacturing facility at the Port of Little Rock.
However, these plans have been delayed by the Colt acquisition. CZG representatives have told media outlets that the deal has pushed plans back three to five years.
In an interview with the Arkansas Democrat-Gazette, Little Rock Regional Chamber CEO Jay Chesshir said that there are still possibilities for CZG in Little Rock. “What we’re telling the company is that once they get through this process and the assimilation of that acquisition and once they determine what their production capacity needs are that point in time, we certainly want them to revisit the possibility of them looking at Little Rock and the port in particular to build whatever their next capacity needs to be,” he said in a February 2021 report.