Prague, Czech Republic 鈥� Czech arms maker Ceska Zbrojovka (CZG) said Thursday it will buy the legendary US gun manufacturer Colt, including its Canadian unit.
鈥淐ZG shall acquire a 100% stake in Colt for upfront cash consideration of $220 million (180 million euros) and the issuance of 1,098,620 shares of newly issued CZG common stock,鈥� the Czech company said in a press release.
CZG expects to finance the transaction with its own cash, income from a recent public offering and a planned bond issue.
The takeover is subject to approval by market regulators, but CZG said it wants the deal to be completed in the second quarter of the year.
鈥淲e are proud to include Colt, which has stood shoulder-to-shoulder with the US Army for over 175 years, in our portfolio,鈥� said CZG board chairman Lubomir Kovarik.
Colt chief executive Dennis Veilleux hailed the planned transaction as 鈥渁 powerful combination for both brands and for our customers鈥�.
CZG, which employs some 1,650 staff in the Czech Republic, the United States, and Germany, produces police and military firearms, but also sports and hunting weapons bearing the CZ mark.
Established by legendary gunmaker and inventor Samuel Colt in 1836, Colt supplies its products to the US, Canadian, and other armed forces worldwide. It also produces sports and hunting weapons.