The American arms company Colt, the manufacturer of the famous Colt pistol, was sold to the Czech Ceska Zbrojovka, according to a message on the buyer’s website.
The deal to acquire 100 percent of Colt’s shares was worth $ 220 million. In addition, it was partially paid for with Ceska Zbrojovka securities. The previous owners will receive a million shares. They are entitled to the same amount, provided that EBITDA (pre-tax profit) of Colt in 2021-2023 reaches the previously agreed indicators.
The deal agreed by the parties must be approved by Czech regulators. Ceska Zbrojovka expects this to happen in the second quarter of 2021.
Ceska Zbrojovka said the acquisition of Colt “fits perfectly into a strategy to become a leader in the firearms industry and a key partner for the military.”
Colt was founded in 1836 and specialized in the production of pistols and revolvers of the same name. For a long time, the main client of the company was the US Department of Defense, but since 2011 the number of orders has dropped sharply. In June 2015, Colt filed for bankruptcy.