One of Europe’s leading firearms companies is in negations to acquire an iconic American gun maker.
According to The Firearms Blog, ÄeskÃ¡ ZbrojovkaÂ (Czech Armory) better known as CZ, is in negotiations with Colt Manufacturing and is looking to take over the iconic American brand.
CZ informed their investors back in November of the proposed purchase with a letter of intent. They planned to finalize the deal at the end of 2020. On 9 January CZ updated their investors in a letter informing them of the progress.
Prague, 9 January 2021 â CZG â ÄeskÃ¡ zbrojovka Group SE (âCZGâ or âthe Groupâ) further
to our previous disclosure with respect to the Letter of Intent dated November 5, 2020, for the acquisition of 100% of the outstanding equity interest in Colt Holding Company LLC (âColtâ),Â CZG hereby informs that it has agreed with Colt on the extension of the exclusivity period toÂ complete its due diligence until the end of January 2021.
The parties have reached an agreement in principle on key commercial parameters of theÂ transaction and they continue discussing the technical parameters, regulatory reviewÂ requirements, and legal terms and conditions of the transaction.
Execution of the definitive documentation for the transaction is estimated to take place by theÂ end of January 2021, subject to completing the negotiations, finalizing the transactionÂ documentation, and obtaining necessary approvals of the relevant stakeholders.
Assuming achievement of these contingencies, the closing of the transaction would be subjectÂ to regulatory approval. Despite this significant progress in the negotiations, no assurances canÂ be made that the transaction will be consummated.
By the looks of the letter, the deal is all but complete, and barring any unforeseen circumstances will be finalized by the end of the month.
Colt has had a rocky financial past and filed for bankruptcy back in 2015 but emerged from it later that same year.
This is not the first American firearms company to come out of bankruptcy and be scooped up by other companies. Remington went through a similar ordeal this past year with all their assets being sold to the highest bidder.