BREAKING: CZ In Negotiations For Colt Acquisition

[Zarvan]

BREAKING: CZ In Negotiations For Colt Acquisition

Colt, one of the oldest and most venerable names in US firearms manufacturing may be on the verge of being acquired by one of Europe’s leading brands. Česká Zbrojovka better known as CZ are well regarded for for their classic CZ 75 pistols, their bolt actions and most recently their new assault rifle BREN series as well as the popular CZ Scorpion EVO pistol calibre carbine. The details of any possible CZ Colt acquisition are still unofficial.


CZ Scorpion EVO 3 (CZ)

Česká zbrojovka or Czech Armory in English could be about to take over Colt Fireams Mfg., a brand renowned not only for their long revolver lineage, running from Samuel Colt’s percussion revolvers in the 1850s through the Colt Single Action Army to the classic Colt Python and Cobra wheelguns, but also as the company responsible for the Colt 1911 pistol and bringing the M16/AR-15 platform to the fore.


Colt King Cobra Target Revolver. Note the nice touch of the chamfering towards the front faceof the chambers. Image Credit: Colt.

CZ informed their investors back in November with a letter of intent that they were launching efforts to acquire “100% of the outstanding equity interest in Colt Holding LLC, a Delaware entity and indirect owner of the Colt Manufacturing Company LLC operating business.” The deal was anticipated to be “ready for execution by the end of 2020.” A number of European news outlets have already reported on the deal including Die Welt in Germany and Echo24 in the Czech Republic.


Two World Wars: M1911A1

On the 9th January CZ issued a statement to its investors giving an update on the progress of the acquisition:

Prague, 9 January 2021 – CZG – Česká zbrojovka Group SE (“CZG” or “the Group”) 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.

Assuming achievement of these contingencies, the closing of the transaction would be subject to regulatory approval. Despite this significant progress in the negotiations, no assurances can be made that the transaction will be consummated.

It would appear that an agreement in principle has been made but key negotiations on certain elements continue. No official announcement has been made by either company at this time.

Colt, like a number of other US firearms manufacturers have struggled financially in recent years. Back in the summer of 2015 Colt filed for Chapter 11 bankruptcy but emerged before the end of the year. Colt is believed to currently employ over 700 staff and has recently been focused on military contracts for the US Government.

H/T – Ondřej T.

Matthew Moss
_________________________________________________________________________
TFB – Assistant Editor
OvertDefense.com – Editor
Matt is a British historian specialising in small arms development and military history. He has written for a variety of publications in both the US and UK, he also runs www.historicalfirearms.info, a blog that explores the history, development and use of firearms. Matt is also co-founder of www.armourersbench.com, a video series on historically significant small arms.
Here on TFB he covers current military small arms news.
Reach Matt at: matt@thefirearmblog.com

BREAKING: CZ In Negotiations For Colt AcquisitionThe Firearm Blog

 

[Metal 0-1]

Colt is dying. It's better for them if they sale their company.

 

[mingle]

Colt is dying. It's better for them if they sale their company.

It would be a sad day in American history

 

[Metal 0-1]

It would be a sad day in American history

Only for boomers who still use their rusted 1911s.

US Spec Ops doesn't even use colt guns anymore. They use Giesslee and Daniel Defense uppers on their colt lowers. Colt wasn't evolving with time. Even for Pakistani M4s US Gov. gave contract to FN-USA.

 

[Path-Finder]

Damn, I used to watch cowboy movies because my dad liked them, one revolver brand all cowboys had was Colt.
CZ can sell their guns in america under the name colt. not a bad deal.

 

[ali_raza]

Only for boomers who still use their rusted 1911s.

US Spec Ops doesn't even use colt guns anymore. They use Giesslee and Daniel Defense uppers on their colt lowers. Colt wasn't evolving with time. Even for Pakistani M4s US Gov. gave contract to FN-USA.

wht m4 contract and how much we have

 

[Metal 0-1]

wht m4 contract and how much we have

Which we bought for SSG/SSG-N

 

[MastanKhan]

Damn, I used to watch cowboy movies because my dad liked them, one revolver brand all cowboys had was Colt.
CZ can sell their guns in america under the name colt. not a bad deal.

Hi,

Colt will stay as colt--CZ will stay as CZ

 

[Path-Finder]

Hi,

Colt will stay as colt--CZ will stay as CZ