Czech Firm Ceska Zbrojovka Acquires U.S. Small Arms Maker ‘Colt’ Our Bureau 5456
Colt M4 rifle
Czech firearms manufacturer, CZG – Česká zbrojovka Group SE has announced the acquisition U.S. based small arms firm, Colt Holding Company LLC (“Colt”), as well as its Canadian subsidiary, Colt Canada Corporation.
CZG shall acquire a 100% stake in Colt for upfront cash consideration of $220 million and the issuance of 1,098,620 shares of newly issued CZG common stock. The agreement also provides for potential earnout consideration of up to 1,098,620 shares of newly issued CZG common stock if defined EBITDA thresholds are achieved in years 2021 - 2023.
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The combined group will have revenues in excess of USD 500 million and presents a real small arms powerhouse,” Lubomír Kovařík, President and Chairman of CZG, said.
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