The Czech-based parent company of CZ group has completed the purchase of Connecticut’s Colt after finally securing regulatory approval from Canadian and American agencies.
The deal to buy Colt has taken years to secure as the CZ group has run into several issues while in the process of picking up the company. After the initial negations between Colt and the CZ group were finished the regulators came in a bogged the entire acquisition down. The main cause for concern was CZ having to deal with regulators from both the US and Canada, but that is all behind us now and the CZ group has finally picked up Colt.
The deal was reported to involve $220 million cash upfront and 1 million shares of common stock.
The main purpose of this deal is reported to be manufacturing capability. The CZ group wants to expand its manufacturing potential for the law enforcement, commercial, and military market. Chairman and president of the CZ group, Lumboir Kovarik said “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.”
