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Colt Sold to CZ


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https://ktar.com/story/4017730/us-gun-maker-colt-bought-by-czech-company/

 

 

US gun maker Colt bought by Czech company

BY ASSOCIATED PRESS | FEBRUARY 12, 2021 AT 4:38 AM

UPDATED: FEBRUARY 12, 2021 AT 5:47 AM

 

UPDATED: FEBRUARY 12, 2021 AT 5:47 AM

PRAGUE (AP) — Czech firearms company Ceska Zbrojovka has signed a deal to acquire Colt, the American gun maker that helped develop revolvers in the 19th century and has since supplied the armed forces in the U.S. and other countries.

 

Ceska Zbrojovka Group SE said Friday that it has purchased all the shares in Colt Holding Company LLC, the parent company of Colt’s Manufacturing Company LLC and its Canadian subsidiary, Colt Canada Corp.

 

The deal is worth $220 million and 1,098,620 newly issued shares in Ceska Zbrojovk and is subject to approval by regulators. The Czech company said it expected the transaction to be completed in the second quarter of 2021.

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What is CZ looking for? ...

To expand market share by purchasing a competitor's compatible intellectual property and manufacturing.

 

The only real place the two compete is Colt with Dan Wesson in the 1911 market, and to a very limited degree in the revolver market. The type of "competitor" you're referring to would be Sig Sauer. I doubt they look at the firearms market as an "overall" for share; they are looking to their segments, which is why I thought "maybe" Colt's AR production and patents, expanding into a new segment and perhaps gaining an edge for government rifle contracts as they have for service pistols.

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What is CZ looking for? To expand military contracts to rifles? I don't see the fit. :unsure:

 

I'm guessing Colt's Patent library played a big part, as well as their US manufacturing presense that can almost certainly help with government contracts worldwide. Also no need to deal with importation drama when you have the facilities to manufacture your product domestically inside the US.

Edited by Flynn
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  • 3 weeks later...

 

What is CZ looking for? To expand military contracts to rifles? I don't see the fit. :unsure:

 

I'm guessing Colt's Patent library played a big part, as well as their US manufacturing presense that can almost certainly help with government contracts worldwide. Also no need to deal with importation drama when you have the facilities to manufacture your product domestically inside the US.

 

I do a lot of logistics work for the government and even a minor assembly process taking place in the USA will open up a lot more contract work opportunities for CZ.

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