The CZ-USA Group has signed an agreement to acquire 100 percent of Colt Holding Company, LLC, the parent company of Colt’s Manufacturing and Colt Canada.
Colt was acquired for $220 million and 1,098,620 shares of stocks which is the estimated market value of the company.
The stock sales are still subject to approval from federal regulators
which would be completed in the second quarter of 2021.
“With this strategic move, CZG will acquire significant production capacity in the United States and Canada and substantially expand its global customer base,” said CZ.
Once the acquisition is finalized, Colt will become the new sister company of CZ which would increase the total revenue of both companies in excess of $500 million per year.
Colt has been producing firearms for the past 175 years and created most of the equipment the US Military and Law Enforcement uses.
Colt has produced the iconic M1911 pistol since WW1, the Vietnam era M16, and later the modern M4 rifles used in Iraq and Afghanistan conflicts.
In 2015, Colt has filed for bankruptcy after losing its government contract in 2013 and has not recovered financially since then.